There are many ways of investing your money to make it grow and provide long-term wealth for you and your family. If you have decided to go with real estate investing, rental properties are a wonderful option for you. This mode of investment is less risky and promises wonderful returns if you have done careful planning and due-diligence beforehand. Here are 10 reasons why rental properties are the best investment option for you. You can also check out our investor checklist here.
You do not need any special knowledge to start as an investor. If you can buy a good property in a decent location, you can easily start your business with rental properties.
2. It makes you your own boss
If you hate your 9 to 5 job that leaves little time for yourself. You will enjoy being an investor where you are your own boss.
3. Provides steady stream of passive income
You can not only pay off your mortgage obligations but also enjoy a decent passive income month after month form the rents paid by your tenants.
4. Your property grows in value
If you choose the location of the property well, you can benefit from appreciation in its value year after year. Once you pay off your mortgage, you are the outright owner of the rental property.
5. Reap tax benefits
By owning a rental property, you become eligible for many tax reliefs to save your hard-earned money when paying your income tax. In addition to interest payments, you can write off your insurance, travel expenses, and even the expenses incurred on maintaining an office. Please refer to your tax professional for any/all tax information.
6. Pay off your loan from rent payments
Rental properties are a great investment vehicle as your tenants pay off your mortgage in the form of monthly rents.
7. Rental property provides job security
You face the risk of being fired or laid off in an office job but there are no such fears in being an investor of rental properties. You will continue to find tenants if you maintain the property in a good condition.
8. You can choose to live anywhere
You can manage your rental property by living far away from it by hiring a local property management experts like IIP Management.
9. Leverage others’ money to become a landlord
You only need a small downpayment to become an investor as the rest of the amount is financed by a bank or lender.
10. It is free from the volatility of stock markets
There are no shocks and surprises in store for you when you become a landlord as opposed to the constant up and down of the stock market. You know your income and expenses and are basically in total control.