Is Rental Property A Good Investment Opportunity?
Well, you’re certainly not the first to ask this question, and as far as investments are concerned it’s a pretty common choice. But, like most investments, there comes a chance of risk and the number of factors to consider can be overwhelming.
So far, a lot has happened in 2020. Natural disasters, stock market fluctuations, the unemployment rate is at an all-time high, and businesses are struggling to keep up domestically and globally. Uncertainty has gripped the world and left many crafty business entrepreneurs wondering about the future of good investments.
During times like this, wise investment decisions are usually those that can pay dividends in the long run and help supplement a steady income stream. And one of the best ways to accomplish this is through rental property. Here’s why.
Investing in Rental Properties
According to a 2019 Gallup survey, 27% of Americans prefer investing in stocks, while 35% feel real-estate investments are better for achieving long-run profitability. Currently (early 2020), stock markets are not doing that well at the moment, with most major global markets plummeting or taking massive losses. This should help clear some doubts for people who are having second thoughts.
Whether you are seeking investment options or want to retire early, investing in rental properties is probably your best bet at this particular moment. You just need to formulate the perfect rental property investment strategy and hope for the best.
Things To Consider Before Investing In Real Estate
- Here are a few questions to ask yourself before you decide to invest in real estate:
- What do you expect to earn from the investment?
- How easy would it be to liquidate the property?
- Are there any potential risks?
- Do you have a strong rental property investment strategy? Or a diverse portfolio?
- Can you get any tax benefits?
Why Invest In Rental Property?
- You Are Your Boss
The best part about rental property investment is that you call all the shots. From purchasing the best properties out there to finding tenants, and maintaining the property — you do it all at your own accord.
And if you are managing several properties or simply feel overwhelmed, you can always opt for the services of a property manager, such as SLT Properties, that can run your operations through and through.
- A Regular Income
If you have a solid investment strategy, you can diversify your income stream — with a steady rental income. If you are still unsure, read up our piece on how to calculate rent on a property, and what constitutes a good rental property?
- Paying Mortgage Is Easy
If you make several real-estate investments, you will not have to worry about paying your mortgage each month.
With the rental income you receive, you can pay off your house without having to wait for your paycheck from elsewhere.
- Tax Deductions
As a property owner, you may receive certain tax benefits, i.e., low interest on credit cards and mortgage.
The tax benefits can help ease your financial worries and allow you to spend more each month on things you enjoy.
Ready To Invest?
If you feel you have enough on your plate already and can’t manage a rental property by yourself, our team can help.
Hire a property manager, and they will take care of all the day-to-day operations of your real-estate investments. As a leading property management company in the Piedmont Triad area, we can help you get the most out of your investment and remain worry-free. To learn more get in touch with us today!