A simple stress test before buying rental property

A stress test does not predict the future; it shows how dependent a plan is on optimistic assumptions. Change income, costs, vacancy and exchange rates where relevant. If a small change makes the plan difficult to sustain, reassess the budget before committing.

Practical steps

1. Start with evidence-based assumptions and comprehensive costs
2. Create a less favourable case with several changes happening together
3. Identify reserves and alternatives without relying on an immediate sale

General guidance. Consult qualified professionals on legal, financial and technical matters specific to your transaction.