Investing in places of residence, and renting them out to potential suitors can do wonders for your financial situation. Here are some benefits you’ll encounter if you make that move.
The value of the property will rise as time goes on, so it’s better to invest in new acquisitions now, before the prices skyrocket later. Take advantage of one of the closest things you’ll get to a guarantee in life: land appreciation.
Find a neighborhood that’s being redeveloped, and on an upward trend for the best-case ROI, and access to resources. Residential neighborhoods with limited urban sprawl would be ideal, this way your building isn't contributing to any kind of overpopulation problem.
There are tax advantages to being a landlord. In certain situations, if you have a mortgage out on a rented property, some of the rent income may be tax deductible. Ask your financial advisor or accountant for more detailed information, and take any financial gifts Uncle Sam is willing to offer.
Who knows? The money saved could allow you some opportunity to upgrade your place with some new cabinets and Mid-Century Modern Furniture.
Renting out property allows you the advantage of financial leveraging. Invest a small amount of your own money into the property. Borrow the rest, and over the course of a few years, your investment should pay off if you factor in the rate of appreciation.
Also, any renovations you end up doing to the Interiors will only add to the equity buildup.
Let’s say you have an apartment building with 12 or so tenants across 3 floors. That’s a dozen people handing you a few hundred dollars every month, which sounds pretty good if you think about it.
Find a real estate agent or property management company that you’re comfortable working with, and let them handle the stresses of all the legal ins, outs and whathaveyous. You just focus on living that landlord life to the fullest.
Source: Emily at Getinmyhome.com