I am a UK resident and home-owner with a mortgage that is 2.5 times my pretax annual salary.
Having investigated the price of my home now since I bought it, I was pleasantly surprised by the return on investment from the increase in house price alone.
This makes me think that a rental property would be a good investment because the rental income, even through a letting agency, would more than cover the mortgage payment and I could accrue more in the returns from the rise in property price.
My understanding is that I could borrow another 2 times my salary on a mortgage and this makes sense since the returns far outreach the costs.
Is there anything that else that I need to consider? Risk? Credit rating? Anything else I'm not seeing? I can't seem to find a downside.
Edit: Thanks to all the contributors. Something to think about, indeed.