Many of us know (especially in the real estate industry) that buying a home is in fact one of the best financially sound and promising investments you can actually make. But this doesn’t go for just your primary residence—this goes for purchasing a second home for passive rental income as well. The extra money per month isn’t the only positive trait of investment properties either. Here are some other reasons purchasing a second income is a great idea.
Cash, Cash, Cash – Even a beginner in real estate investing—if following proper guidance and research—can make plenty of extra money right out of the starting gate. The best advice is to contact your real estate agent to see how they can guide you through the process.
Live Rent Free– The wonderful thing about having a rental property is that you can live no more than 40 feet away from your tenant year-rounds. You’re able to check in and make sure everything is running smooth, complete maintenance tasks and easily collect rent money.
Tax Write-Offs – There are a number of certain tax write offs you can take advantage of with an investment property including but certainly not limited to: property taxes, insurance, interest expense and depreciation.
Appreciation – Stocks go up, stocks go down.Unlike stocks, real estate is not volatile and it’s a fun investment! Unlike cars, or almost every other tangible asset you own, real estate almost never depreciates. The value of your investment home will continue to rise year over year, ultimately matching your bank account attached to the home!
Tenants Pay Down Principle – If you’re new to home-ownership, then you must know one of the most rewarding elements about owning a home: your principal amount on your mortgage amount will go down year after year—and you’re tenants are making that happen. It’s like waving a magic wand, isn’t it?
Real Estate Is Tangible– As previously mentioned, real estate is a tangible asset that almost always appreciates in value. Not only will it appreciate with doing very little if no major renovations to it, but if you choose to overhaul the home or vastly improve the quality, then the value of that property will skyrocket.
Sounds like real estate investment is a solid investment wouldn’t you say? If you’re new to the game, or a seasoned veteran, we encourage you to contact your real estate agent to see how you can get into real estate investing or improve your search and methods. Good luck!