Why You Need Rental Properties
Do you ever worry about your financial future? Maybe you are constantly stressed because you don’t know if your pension will even be enough to live on when you retire. Perhaps you are tired of working a second job just so back-to-school clothes shopping with the kids don’t break you. If you are looking for a way to build your wealth then rental properties may be the answer.
- Less Risky than the Stock Market – Building your investment portfolio can be pretty risky if you turn exclusively to the stock market. Now, there is nothing wrong with investing in stocks! However, any investment broker will tell you that a solid portfolio is comprised of both low and high risk investments.
- Support Your Community – If you have several rental properties there is a good chance you will hire someone to handle the landscaping, pre- and post-tenant cleaning, renovations and maintenance unless you have the requisite time on your hands. By doing this, you will be responsible for helping to create jobs in your community.
- No Longer Dread Tax Season – When you have rental properties, you will learn to save every related receipt because there is an opportunity to deduct whatever is on it. Rental property owners enjoy some impressive tax advantages.
- Increased Cash Flow – Collecting rent every month will definitely be something you look forward to. You will be able to make mortgage payments without reaching into your pockets and have some leftover cash to save or spend.
- Pay Less Interest – No one wants to spend more money on interest than they have to. Since you will have extra money every month, you can pay a little extra on your mortgage. You’ll pay less interest overall if you pay the mortgage off early.
- Increase Value Without Spending Money – Everyone knows you need to spend money to make money, but that doesn’t mean you have to spend your money. Use some of the money you collect from rent for maintenance, repairs and upgrades to ensure the property value continues to rise.
- Be Your Own Boss – It won’t happen overnight, but if you make the right investments, you could be in the position to say goodbye to that job you would rather not go to. There are plenty of people that live comfortably on the revenue generated from their rentals.
It is always a good time to start investing in rental properties. It does not matter what your age is or if it is a buyer or seller’s market, if you do your homework and approach the opportunities correctly, you will put yourself in a position to potentially reap some impressive benefits.