An income property is one that has been bought solely to fatten the balance of your bank account. There are plenty of advantages to plough your money into a property that is being developed for an income, but there are some risk factors that every investor needs to consider. When you want to invest your cash, property is a tangible investment that is extraordinarily attractive, and we’ve got five reasons why your next investment should be in property:
Who’s The Boss? You.
One of the biggest draws of investing in property is the ability to be in charge. Choosing the property that you want to invest in, choosing your tenants that you will rent the property out to, choosing the way that you maintain and manage your property – all of these choices are solely yours. You get to pick whether you go through a real estate agency abroad for your property or whether you stay at home. Your choices will dictate the success of your property and your income, so you have to make these choices wisely.
If you are choosing to buy a property either at home or abroad, you can make the decision whether you are developing the property to sell on or whether you want to rent it out to tenants. Should you choose to go for the latter option, you will receive an income on your property. It may not be a huge amount each month once you cover the mortgage and property maintenance costs, but it’s lovely to have a passive income anyway!
When you are a rental property owner, you are allowed huge tax deductions that you can read about here. From interest to maintenance repairs, there is a lot that you can write-off about your rental property, and this puts money back into your pocket faster than you could have realized.
Believe it or not, your investment in property is a stable one. Many people out there see property as a stable investment in comparison to shares, precious metals or other ways to funnel your cash. Shares are more liquid than a property, meaning that you can get the cash out a lot quicker. If you are developing a property for sale, it can take some time to access the cash.
Property values can fluctuate, and you can make a lot of money with the value of your property going up. You could wait until the property market is sound and sell your upgraded property for a huge profit, one that you may not have been able to do had you not waited. Don’t be afraid to hang onto your property and wait for the opportune moment.
Investing in property is a huge commitment, but it’s one that can bring you a financial reward bigger than most investments can. The only choices that you have to make now is whether you go for a home property or one abroad, and whether you want to be a property developer or a landlord. The choice is up to you.