While there are numerous reasons to invest in rental properties, here are a few of our favorites:
Earning a Consistent, Passive Income
Owning a rental property provides you with a stream of consistent income with relatively little effort to maintain, especially with the help of our property management team! Investing in real estate tends to be safer than the stock market, as your initial investment is secure and hopefully appreciating in value.
Value Appreciation
Real estate values typically increase over time, allowing you to make a larger profit when you decide to sell your property. In addition to this, most rents increase over time, which would provide you with a larger cash flow. As you pay off the mortgage, both your cash flow and equity will grow.
Diversification of Investments
There is only a small correlation between real estate and other major asset classes, and having a diverse investment portfolio is always beneficial. Adding property to a diverse portfolio can often lower portfolio volatility and produce a higher return per unit of risk.
Tax Benefits
Real estate investors often receive numerous tax breaks and deductions. Reducing your taxable obligations can help you save money throughout your time as an owner.
As with any investment, there is an abundance of factors to consider, and these are only a few of the benefits of owning a rental property!
As always, feel free to contact us with any questions! Our realtors would be more than happy to help you find a property to invest in, and our property management team is always happy to help manage any new or existing properties you may have.
