The
fact that you can be your own boss when you invest in rental property is a
benefit which should not be underestimated. Whether you are considering
quitting your current job to become a full-time rental property investor or you
are looking to supplement your current income, you can benefit from the fact
that there is a tremendous amount of independence to enjoy by owning and
operating rental property.
More
and more people are becoming interested in investing in rental property due to
the large number of advantages offered by owning rental property. One of the
largest of those advantages is the fact that when you invest in rental
property, you are able to take ownership of an asset that is tangible. Compared
to other types of investments, this is a tremendous advantage. It can be
difficult for many people to get excited about stocks and bonds; however,
gazing at a piece of rental property that you personally selected and are
maintaining can provide you with the same pride in ownership that you received
when you bought your first home. Rental property is also an income-producing
asset which can be a much appreciated inheritance for future generations.
Income
is another tremendous advantage of investing in rental property. While you will
need to deduct the mortgage payment if you finance the property and any
relevant expenses, a rental property is often able to produce ongoing income
for you.
The
value of appreciation should not be overlooked either. Generally, such
properties improve in value over time. While appreciation can never be
guaranteed, if you take the time to choose a property in an area that is stable
then there is a very good chance that the property will continue to increase in
value as time goes by.
Rental
property owners are also able to take advantage of leverage. This is because
you have the ability to purchase a rental property with funds that are
borrowed. As a result, you are able to begin taking advantage of the benefits
offered by owning rental property while only investing a percentage of the
total value of the property. In addition, since the property itself will secure
the debt you do not have to worry about using other assets to secure it.
Tax
advantages are another important benefit of owning rental property. If you
obtain a mortgage on your property, you will frequently be able to deduct your
mortgage interest payments. There are also a number of other tax deductions
which can potentially be taken when you own rental property including the cost
of repairs and improvements.
