5 Reasons to Consider an Investment Property


Okay, there are more than 5 reasons why you should consider investing in a property, but in this article, we’ll list the top 5 that should convince you that it can be the best way to spend your hard-earned money.

And given the unstable economic times we are currently experiencing, we as investors need to understand where our money can best work for us.

Investing in a property is perennially popular and a lucrative investment property option.

Reasons to Consider an Investment Property

Investment Property

1. Historically powerful yet stable investment

The current unstable economic years have allowed investors to understand that they need to find assets that are both powerful and stable and property perfectly fits this consideration.

Powerful as an investment since properties act as a hedge against inflation and can grow at wealth-producing rates through leveraging. The stability comes from the grow in value steadily and surely, without fluctuations in value.

2. Steady income

As you know, the major point is that real estate allows an investor to have a steady stream of income. If you own one or several real estates for rental, then each one can create an income stream from its tenants who pay you monthly.

This is important because it represents the long-term benefits of real estate. Most people are taught to focus on saving for retirement, but fundamentally, you a need passive source of income that will replace your current one.

3. Property appreciation

Get this, the world will just continue to be populated at a specific rate. More people mean more need for homes, which is why real estate can never go out of style – heck it’s the second basic human need!

Over time, Real Estate prices will go up in value. For instance, from the 1960’s through the early 2000’s there wasn’t a recorded year where median homes decline in the U.S. alone.

4. Get tax deductible Real Estate and lower tax rate

You read that right. Tax codes enable various deductions for the normal expenses sustained in owning real estate, such as property upkeep, improvements, maintenance, and even the interest paid on the mortgage. These deductions can offset income and decrease your overall taxes.

Also, if you sell your investment property after a year, the gain is subject to capital gains tax rates which based upon your individual tax bracket is commonly 15% or 20% which is typically less than one’s personal tax bracket.

5. Loans and rates are better

With the rise of real estate investments come better services offered by small and top lending institutions like Newcastle Permanent. More than ever, real estate is easy to purchase, easy to finance and there are no impossible financial barriers to enter.

How do I calculate how much budget and financing I’ll need?

Don’t take out your paper pad and scientific calculator yet! Thankfully, there are tools available like Newcastle Permanent Building Society home loan calculator to help investors know exactly how much they can borrow.

The calculator also lets you easily plan your repayments. The site currently offers 6 different calculators, including home loan, personal loan, extra repayments, principal and interest, loan comparison, and stamp duty. Check it out!

Yes, buying an investment property is a large task, but it is also massively rewarding. Be sure to research well before executing anything. Remember, the best homes and deals go through research and good execution.

Read Also: How to Calculate the Cost of a Business Loan

Author: Joyce Regala