Why Investing in Property for Rentals is A Pro-Plan?

For those having surplus, there are millions of ways to invest money, and real estate is just one of them! If you wish to put your money to work, the best investment idea is to consider is an income property.

An income property is purchased & developed with the intent of earning revenue from it. It can be residential, such as home, apartments, and villas, or commercial properties. Owners are free to make money through leasing and renting the property and then sell it off for a profit after some time. So, make your prudently, before you decide to invest with your money. Here are five benefits of buying a house to rent:

• You're in Charge: You are the owner of choices of choosing the property, tenant, the rent you'll charge, and the management & maintenance of the property while renting it. Many companies help to liaise with tenants or get your property on rent for short term vacation stays.

• Property Appreciation:  Investing in real estate throws you open to opportunities for leveraging. You need to invest a small amount of your own money while borrowing the rest. For example, you invest $1,00,000 of your own money to buy a property and borrow $9,00,000 from a bank. By combining your money with the bank's lending, you can now purchase an asset worth $10,00,000.

Your investment property will be appreciated by year after year on the asset's entire value, not only on the amount of your own money. After some years, your property will value much more than what you initially invested!

• Money in your Pocket: Leasing and renting your property is a fabulous way to receive a rental income. Any surplus left after paying your expenses is a saving for you! 

• Help with Mortgage: The most prevalent type of loan is a 30-year fixed-rate mortgage. The interest rate remains the same for the entire duration term of the loan. Every year that you own a property, you can use the tenant’s money to pay off your debt. By reducing the amount of credit, you will be building wealth.

• Tax Write-Offs: As a rental property owner, there are few tax deductions you are entitled to. You can write off: Interest on the mortgage, credit cards, Insurance, Maintenance repairs, Travel expenses, Legal and professional fees, Property taxes, and Depreciation. Apart from all deductions, many constitutional provisions allow you depreciation on purchase price based on a set schedule, even if your property is appreciating.

We hope these reasons are convincing enough for you to estimate the profits indulged in Buying Houses to Rent!

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Created on Jun 4th 2020 05:19. Viewed 345 times.

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