Last Updated on February 15, 2024 by Saira Farman
Did you know that stock market declines of 5% to 10% almost always require a month’s worth of recovery time? If you are looking for ways to invest but don’t want to put your fate into a volatile market, consider property investment instead.
Investing in rental properties means trusting the predictable ups and downs of the real estate market. If you’re curious about becoming a property investor, this is the place to be.
Read on to learn how you can benefit from owning rental properties.
Table of Contents
Source of Passive Income
Who wouldn’t want additional income at the end of every month? One of the biggest benefits of owning rental properties is that it provides a passive income source, aka income that requires little effort to maintain.
Before investing in rental properties, work out all of the cash flow details beforehand. This will put you in the best spot to reap the income and tax benefits.
Some of the expenses you owe by owning a rental property can be written off and reduce your taxes. Here are some examples:
- Maintenance and repair work
- Mortgage interest
- Travel costs
- Insurance premiums
- Fees for property management services
- Legal fees
- Office expenses
- Services for accounting
- Utility bills that are included in the rent price
Throughout ownership, you’ll save money from tax deductions.
A smart investor rents out their property while they can and sells when the time is right. When you own rental properties, you can sell when the real estate market conditions are at their best.
This is especially true if you need to move and don’t want to sell your home during the current market conditions. Instead, you can make money off of the property and sell it to make a profit later on.
The great thing about owning rental properties is that they might appreciate over time. However, you don’t want to bank on appreciation rates.
Be Your Own Boss
Even if studying the housing market doesn’t scream career goals to you, the benefit of being your own boss might make you consider owning rental properties.
You don’t have to answer to anyone except your tenants. Even then, you could work with a property management firm that handles all tenant inquiries for you. You can also use tools like Rent Safe to find and screen tenants.
A Stable Investment
Rental properties are income-generating properties making them a more stable investment than other options. Income is more predictable because it is based on the real estate market.
In contrast, the stock market is a more volatile investment option. The rental property demand continues to stay high as the population grows.
Are You Ready to Invest in Rental Properties?
If selling flexibility and being your own boss isn’t enough to make you want to invest in rental properties, stability and passive income might change your mind.
Becoming a real estate investor is a great way to make money on the side and grow wealth for the future. You’ll always have the option to sell your rental properties if you no longer wish to be an investor.
If you want to reap the above benefits and much more, start searching for properties to purchase. Don’t forget to keep coming back for other real estate tips once you finish your first buy!