It is no secret that buying a home is one of the best financial investments a person can make. This doesn't mean for just your primary residence, either. 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. There are a plethora of reasons purchasing a second income is a great move to make in 2022.
Tax rates are going to still hover at historically low levels. Forbes has predicted that rates should not even reach 4% through all of 2022. That is remarkable news, especially for first time home buyers.
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 and they can further explain the benefits of a rental property.
Another wonderful thing about having a rental property is that you can live fifty feet from your tenant year-round (if you choose to.) Or, you will most likely live in the same city, at least. You’re able to check in and make sure everything is running smooth, complete maintenance tasks, minor repair, and the best part is being able to easily collect rent money. You can even claim tax write-off's for a lot of the property's expenses!
Not only are you able to gain rent money, but the value of the property will naturally appreciate. 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.
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.
So, does it sound like investing in a rental property in 2022 is a good idea? 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. It'll be well worth it!