Trying to think of ways to invest your money? Need a little bit more cash in your pockets? Have you considered income properties?
We realize that sounded like the beginning of a really bad infomercial. But if we’ve peaked your interest regardless of sounding like a Shamwow advertisement, you might be wondering what an income property is. An income property is a property bought, flipped or developed with the goal of gaining another source of income. An income can be earned by renting out the property or selling after the value has increased. There are many benefits besides making more money, so we thought we’d list the top ones.
1. You Get to Pull the Strings
Since you own the property, you get to make all the decisions when it comes to the type of property you invest in; who you choose to rent to, how much you will charge in rent and how you deal with the upkeep. Investing in an income property gives you the opportunity to control and manage your money and your investment the best way you see fit.
2. You Gain a Second Form of Income
Before you go daydreaming about jumping into all the piles of money you’ll be making, it’s important to understand how much you’ll be realistically pocketing. Your mortgage won’t be the only thing you’ll be paying for using the money you make on your income property.
It’s important to remember to put aside additional savings for maintenance and vacancy costs in case a pipe breaks or your rental property is left vacant for a period of time. That’s not to say you won’t be pocketing a fair chunk of change at the end of each month, but it is important to consider possible hiccups that could pop up in the future.
3. Huge Income
As an income property investor/rental property owner, you’re entitled to BIG tax deductions.
Mortgage interest, utilities, property taxes, property management fees just to name a few.
4. Long Term Gains
If it’s one benefit that you should take home from this blog it is the return you gain from holding onto a long-term income property. Your investment will create another form of regular income and hopefully increase in value, all while you’re paying off some form of housing debt.
Compared to other investments, you’re guaranteed to see a return on your income property given you make sound decisions during the process such as picking reliable tenants, continuing to maintain the property when needed and allocating your rental income responsibly. If you like what you see and are seriously considering investing in an income property, check out our homes in Jensen Lakes! Our showhomes, The Sandkey (146 Joyal Way) in particular, showcase ways you can see a return on an investment!
