Yes, investing in property isn’t as simple as you believe. It involves a lot of complicated processes as well as a bit of risk. But, we can affirm that property investment is an incredible path that can help you reach your financial goals and independence.
We’ve listed some of the reasons that we believe investing in real estate will have the best chances of success:
1. Passive Income
Who wouldn’t love to work for anything? Nobody! This is the reason we put this on the list as the first benefit of investment properties. It can be converted into an extra source of income, and you’ll get additional cash each month without doing anything whatsoever.
Imagine being capable of investing in not just one property, but several of them. Interesting, hmm?
2. Tax Benefits
Another great benefit of investing in real estate is that, even if the rental income isn’t enough to cover the entire cost of your property. There’s still the tax deduction to ease the burden!
In the case of example at the end of your financial year, all the expenses you’ve paid out in cash, like the repayment of council rates, loan payments, and utility bills could be utilized to offset your tax-deductible income.
3. Capital Growth
You’ve likely heard that every property increases in value in 10 years, correct? While this is true when you enter the market for real estate with such expectations may cause you to be disappointed.
The best thing is to have a plan and know the most appropriate time to buy on the market which is any time if your financial resources permit it. Be aware that timing the market is better than making the best of timing.
4. Early Retirement
Alongside the passive income, one of the benefits of owning a property is that you can attain the desire of leaving your job and living on rental earnings. This is particularly the case if you have several properties and you could even earn more money than what you earn from your job in the office every month.
Plan in advance if you plan to retire earlier. Consider the time it takes to pay off your mortgage, the time it takes to see house prices rise in the way you anticipate seeing, and much more.
5. The Power To Increase Its Value
Another reason that investing in real estate could be more beneficial than investing in stocks is that you could personally contribute to growing what you can get from your investments by way of improving the state of your home (painting flooring, painting or kitchen, renovating the bathroom and kitchen or building a granny flat and so on. ).
6. Leverage Equity
After you’ve managed to invest successfully in one specific property it’ll be easier to build your portfolio by simply borrowing.
This could be a useful option especially if the first investment property has increased in value. This implies you can access more capital. This is why you could refinance the property and utilize the equity pool to make another investment in the property. It’s also a good method to save money for an eventual downpayment.
7. Property Manager.
As we’ve mentioned before the steps associated with property investments can be daunting. However, this doesn’t mean you’ll be tasked with carrying all the weight of the responsibility. The good thing is that one advantage of investing in property is that you can employ an experienced property manager who can outsource the tasks that require hands. This can include arranging inspections, vetting prospective tenants, and submitting the rental to a professional at less than a dollar per month.
Not only will it save you time and stress A property manager is equipped to boost the performance of your investment.