Everyone should be focused on building a sustainable future for themselves. However, determining how to accomplish this task can be more difficult than many of us give credit to.
As far as forms of investment go, few can be as possibly lucrative as investing in rental property. As most financial advisors can tell you, if you want to build long-term wealth, investing in this sort of manner will be essential.
Lucky for you, now is a great time to start investing in the world of real estate. If you’re not yet convinced, read on and we’ll walk you through why this year is a fantastic time to make a real estate investment.
1. Property Appreciation
You may tell yourself you’re going to find time to invest in a rental property at some point in your future. But did you know that each year you let go by, you actually lose a lot of the money you could be making with this type of investment?
It’s true! One of the main advantages of investing in real estate is that a property that you purchase tends to appreciate in value. That means, unlike most things, the value of the home or apartment you purchase is only going to go up with time.
That means that each year that you hold onto a piece of investment property, you’ll be making some kind of money. The more years you hold onto a piece of property, the more you’ll make.
This gives you a good reason to start investing now so you can reap those rewards as substantially as possible later on. This is one of the greatest benefits of investing in real estate because it’s not even a result of any work you have to do.
You can just sit back and watch the value of your investment rise.
2. Amazing Source of Passive Income
Once you have a rental property in your possession, there are numerous ways you can turn it into a source of additional passive income for yourself.
The most common way to do so would be via short-term or long-term rentals of the property. You can list your property on a website like Airbnb and charge per night for people to come and stay at this property.
If you own a property in a desirable city with a lot of visitors, this can be a great way to turn a good amount of profit in a small amount of time.
You can also use your rental property to rent to tenants for the long term. You can have people sign month-long, or even year-long leases and pay you rent for the time they are staying in your property.
These rentals can help cover the cost of the mortgage for the property and still leave you room to make a solid profit.
If you decide you can manage this rental property all on your own, you’ll be able to take the whole of these profits for yourself. Or, if you decide to work with a property management company, you’ll invest some of those earnings into that kind of service.
In return, you’ll have a passive source of income that requires little to no actual work from you, allowing you to focus on your main work and the rest of your life.
Either way, this kind of situation can be extremely lucrative, and it’s a good reason why you should learn how to buy rental property this calendar year.
3. Tax Write-Offs
Another amazing reason to consider purchasing some sort of rental property in the coming year? You’ll be able to use it as a major write-off for your taxes. Being a rental property owner allows you access to a huge number of helpful tax deductions.
There are so many different things you’ll be able to write off. Interest that arises on the mortgage from the property can be written off, as well as any interest on credit cards used to make purchases for this investment.
On top of that, all work related to the property can be written off. That can include things like insurance policies, maintenance and repairs, travel expenses, legal fees, and more.
If you’re looking for a way to keep your tax bill low in the coming year, investing in a real estate property might just be the most efficient way to do it.
4. It’s A Good Time To Buy
2022 is a great time to buy rental property. Interest rates are at historic lows, meaning you’ll be able to get a deal on a home that is highly enviable. The cost of your mortgage will be more affordable now than it will have been in the past, and likely more affordable than it will be in the future.
There’s never been a better time to buy.
At the same time, you’ll also be purchasing property in a booming housing market. Once you have the property in your possession, you’ll find that the current costs for short-term and long-term rentals are quite high thanks to a huge amount of interest and competition.
While your initial investment total might be a little higher during this time, you’ll also be able to make back that money with a quicker turnaround.
Investing in Rental Property
If you’re looking to focus on your financial future this year, there are few steps you can take that will be more lucrative than investing in rental property. The above are just a few of the many reasons to consider this form of investment.
Need more personal finance or real estate advice? Keep scrolling our blog for more.