With so many different places to put your money, why would you want to invest in property?
If you want your money to start working for you, then it’s important to find the right investments. Although there are many places you could put your money, one of the smartest investments on the market is property. Buying an investment property and renting it out can provide you with years of returns on your investment, and the best part is that you can even use the rent you collect to pay for your rental home’s mortgage. The following is a list from our professional property manager in Pleasant Hill of just a few of the many reasons to invest in property:
#1. It’s relatively easier to get financing to invest in property.
Securing financing for a investment property is much easier than securing financing for any other kind of investment. That’s because the home itself is collateral, which gives the lenders something to collect in the event that you don’t make your payments. Another reason why it’s easier to get financing for property is because investments in property are more likely to yield a higher return on investment (ROI) and are, therefore, seen as safer for lenders.
#2. Investing in real estate can yield a high ROI.
You don’t have to have the cash to buy an investment property outright. When you secure financing for your investment, it means that you are only footing a small portion of the entire bill by yourself, which also means that you’re getting a large return on a small investment. As long as you keep renting out the property, you’ll keep enjoying the returns of your investment every month, even after the property has been paid for.
#3. You’ll be able to take advantage of tax benefits.
There are many tax deductions that property investors can take advantage of, including:
Insurance - Any insurance policy pertaining to the rental property that you take out can be deducted from your taxes, including theft insurance, fire insurance, flood insurance and landlord liability insurance.
Repairs - When you make repairs in the home, you can deduct them from your taxes in the year the repairs were completed. Tax deductible repairs apply to almost any work done in the home, from fixing broken appliances to the repainting the walls.
Interest - The interest on your mortgage, as well as on any loans you’ve taken out to maintain or improve the investment property, can be deducted from your taxes. You can also deduct the interest that your credits cards accrue when used for services or goods for the property.
The tax advantages of investing in property are some of the most lucrative in the investment world, and they give investors a chance to grow their assets virtually tax-free.
Enjoy the benefits of investing in property yourself by turning to Stowers Real Estate.
These are just a few of the many benefits of investing in real estate, and if you’re ready to take advantage of them, it’s time to turn to the experts at Stowers Real Estate. Not only can we help you find the right investment property; we can help you manage it too. Contact us today, and please stay tuned for our next blog to learn about a few more benefits associated with property investments.