When is the best time to invest in property and become a Landlord? What if the interest rates were to go up, or for that matter, go down?

In the short- or medium term there will be fluctuations in property prices. They may plateau or even decrease at times. Seasonal changes may also come into play, for example in winter the property market may be slower. However, it is a simple fact that there is a general rise in property prices in the long term.

So, the best time to be come a landlord is: As Soon As Possible. An oft repeated adage in property investment is - do not wait to buy property, buy property and wait.

But what about the interest rates?

If the interest rates are rising, fewer people enter the property market, which results in an increase in rental demand. The experienced landlord sees this as an opportunity to expand his/her property portfolio. The landlord may also be able to increase monthly rentals, provided they stay market related. This means the shortfall between rental income and the mortgage and other expenses will be reduced.

More properties will become available on the market due to buyers, who overextended themselves initially, and can no longer afford the increased mortgage repayments. This can be an ideal time to buy property at a good price. The landlord need not concern himself with a temporary reduction in property prices - the property investor does not take a short-term view.

If the interest rates were to go down, more people can enter the market as buyers. This may mean a lower demand for rental property, especially at the high end of the market. When you become a landlord, your main focus should be on entry level properties, for which there will always be a good demand for rentals.

Lower interest rates and a higher demand for property also mean a rise in property prices, with a higher growth on the landlord's capital investment. This may be a good time for the landlord to consider re-mortgaging some of his properties to realize capital for further investment.

The only factor that actually determines the best time to invest in property, is your ability to finance any shortfall between mortgage and rental income. Even that shortfall decreases with time due to periodic rental increases.

To become a landlord you need to invest as soon (and as often) as possible in property, using other people's money. Thereafter it is a matter of taking the long term view and letting your properties work towards your wealth creation.

The first step is simply to make the decision to become a landlord.