Why You Should Be Investing In Rental Properties

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If you are looking to invest some of your money but are nervous about the trade markets, you should be considering property investment. Putting your hard-earned money into a bricks and mortar investment is one of the safest way to grow your wealth. You can start earning a passive income through monthly rents and take advantage of some fantastic tax benefits.

With a rental property you not only earn equity on your house but you can also increase your cash flow with very little risk. There will always be a need for housing, so providing a rental for people will never go out of style. It is a necessity in a community and this is part of what makes it a great investment.

Whether you are looking to invest in a multi-unit building or buying a house to renovate and resell, property investment has great benefits like great profit margins and numerous property tax deductions. Take a quick look at some of the reasons why you should be investing in property.

Additional Incomes

If you are planning on renting out your space, you will be able to bring in a passive monthly income by charging rents and minusing your expenses. The other income that will steadily accumulate is the equity value of your property. You can have your renters pay your mortgage while the equity continues to grow with no extra investment from you.

Control

With investments such as stocks and bonds, you are never in real control of your money. Your advisors can tell you where to put your money but once it is invested it is often garnered by limitations and regulation. When you buy a rental property you are in charge of what happens with your investment. You decide what strategies to use, how much to charge in rent and have your choice of tenants.

Tax Deductions

When you own a rental property it is viewed by the IRS as a business. As such it is entitled to many tax deductions that are separate from just homeowner’s rebates. You can expect to claim deductions for many things like depreciation which can decrease the amount of your passive income putting you in a lower bracket. Claim any operating expenses and include your mortgage interest, maintenance costs, utilities, property taxes and home office expenses.

Demand

There will never be a time when housing isn’t needed. If you choose your property wisely your location will draw renters for years to come. You don’t have to worry about there being a shortage of people who need appropriate housing. Whether the economy is at a high or low, people still need to have a roof over their heads.

Insurance

Properties are one of the only investments that you can insure. There is no guarantee with any other type of investment that you will be able to recoup your original money. With a property you can insure and protect yourself against theft, damage, fire, loss and liability, adding an additional layer of protection on your investment.

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