Buying an investment property is a major commitment that requires thorough analysis and research. When done right it is one of the most profitable investment with a potentially high success rate. Here are 5 advantages of owning a property investment that will help you decide.
1. Generates Wealth
Real estate can be risky that’s why buyers should choose homes that generate cash flow. It is a stable way to increase wealth over time. Through rentals it can provide a steady passive income. Rental income will work for you even if you are working on a different job entirely. Buyers will also be able to build equity for the future. If the lease is priced well, it can cover your monthly mortgage and pocket part of the income. As you build your equity you will be able to build your portfolio of multiple investments. In time, you will have the freedom to do what you enjoy while your investments work for you.
2. Variety of Opportunities
Buying a property in itself provide ranges of opportunities. You’re free to decide which type of investment property to buy (single-family home, multi-family home, condo, etc.) and which investment property financing method to go for (cash, mortgage loan, private money, hard money, etc.). Buyer may opt to have the home leased short or long time, turn it to a vacation home or vacation rental, handle the lease concerns on your own or work with a rental company. Turnkey rental investment with in house property management is a top choice for buyers who doesn’t want to concern themselves with the 2am calls of the complaining tenants.
3. Less Risky than Classic Investments
Unlike classic investments like stocks where you have to put in the whole amount of the investment, Real estate can be more flexible with banks paying of up to 80% upfront. While you pay your mortgage, your renters pay you. You have full control on your property investment to increase or decrease lease rate, to live in it, or re-sell anytime. Stock investment could drop down or up in value any minute. Whereas over time real estate home prices and equity build and appreciates more.
4. Positive Local Impact
Often we fail to notice the impact of real estate to our local communities. One of the advantages of a property investment is the opportunity to employ local contractors, purchase supplies and materials, and simply stimulate the neighborhoods economy. Investors also forget that they are helping a family by providing a roof on their heads. After all, not everyone can afford to purchase their own home and settle on renting instead. By investing in a residential home not only are you helping a family but also energizing the local community.
5. Real Estate Appreciates Well
Most real estate values usually appreciate. Your property investment can never go down to zero. Even if the value drops, it will always be worth a sum unlike other fluctuating investments. Rental rates continue to rise because of demand. You can never go wrong with investing in real estate.
Are you planning to buy your first investment property? We specialize in turnkey investments and can further shed light to your questions. Click here to know more or call us at 901-800-6693.