Rental property investments have been booming in the last few years, which has resulted in a sort of global gold rush for great properties to buy and rent. However, for some reason, a lot of people seem to be wary of the sector and still don’t see it as a viable investment option. In this article, we’re going to give you a few reasons why you should think about investing in rental properties today.
1. Passive Income
Rental properties can be a great source of passive income if you manage them properly. Owning rental property allows you to receive a regular monthly income stream and pay down your mortgage at the same time. While managing properties can demand some work, the whole process can become passive by working with a property management firm that will handle everything from timely repairs to collecting rent.
2. Properties are an Appreciating Asset
Another thing that makes property rentals so beneficial is the fact that they are an appreciating asset. This means that if for some reason you fail to attract tenants, you can still manage to make money on the back end by reselling the property for a higher price. Rental properties give you a level of flexibility that is rare with regular investments.
3. Getting Started is Simple
You don’t have to be a seasoned investor to make money with rental properties. As a matter of fact, this is one of the best ways for first-time investors to get their feet wet. Sure, it’s always important that you study the market and learn the ins and outs of real estate property before you start, but it’s nowhere near as complicated as some may have you believe.
Getting started in foreign rental real estate is not that complicated either. You can find great properties through local agents and list them online for rent. Many countries make it easy for foreigners to invest in and own property, and they often allow you to stretch your dollar further because of lower property prices.
There are two key elements we have identified after collaborating with rental property owners through MaltaSothebysRealty: one was how easy they found it to list and find people to rent apartments and how they couldn’t satisfy the demand at certain times of the year. Try to find some hot spots with low property prices and high seasons.
4. Tax Benefits
There are also tons of tax benefits associated with property rental ownership. In many cases, you can write off interest on your mortgages or even credit cards used for maintenance on your properties. Maintenance costs, insurance, and even things like property tax can be deducted as well.
5. You’ll have the Chance to be your Own Boss
Another great part of investing in rental property is the ability to be your own boss. If you’re independent just like me, you’ll love the idea of being location independent and work on your own terms. You’ll decide everything from which house you wish to invest in, the tenants, how much you will charge for rent, so on and so forth. This gives you a massive amount of liberty unseen in practically any line of business.
6. It’s Effective
People will always look for places to stay. This is one of the reasons why real estate is such a solid investment. While other sectors may come and go, property remains a steady investment, which makes it a great area to tuck away capital.
Another great aspect of rental properties is how diverse they are. You can decide to rent single-family units, condos, vacation homes, cabins, apartment buildings, or industrial space; the possibilities are almost endless. If you prefer one type of property or tenant, you can stick to that area. If you’d rather have one high paying tenant, or have multiple tenants paying you each month, there is a type of rental property for you.
8. Accomplishes many Goals
Rental property ownership accomplishes many goals at once. It provides a source of positive cash flow, steady monthly income, and long-term capital. You can also add value to a property through remodelling while writing off maintenance costs.
9. Will Increase your Business Acumen
In addition to being a great investment, owning rental property and real estate are a perfect first-time investment. They allow any novice investor to familiarize themselves with the world of business. Simple things like calculating expenses and interest rates can teach you things about margins and overhead charges.
10. Great Way to Diversify a Portfolio
For those who are already seasoned investors, real estate rental is another great way to diversify any portfolio. This is especially true when interest rates are at their lowest, prompting rental values to go up and rents too.
Rental properties are one of the most efficient investments you can make. They are a great source of passive income, require relatively low capital to get started, and are a great appreciating asset, making it the perfect investment for any novice or seasoned investor.
Photo by Adrien Olichon from Pexels