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3 Reasons to Get Started With an Investment Property

Passive income. Monthly rent. Tax benefits. Equity.
The benefits of real estate investment go on and on. And real estate is famously a high-appreciating asset. At the same time, investment property is expensive and high risk.
Should you be getting into real estate investing? Will your efforts (and money) pay off?
We think, on the whole, yes. Below, we break down 3 reasons why getting into property investing is a good move. 

 

1. Steady Income

One of the most compelling reasons to invest in property is the steady income. You’ll see your regular income boosted with the monthly rent coming in each month.
This holds true if you choose to invest in both commercial and residential real estate. 
This is an excellent benefit for those looking to increase their income streams or add passive income to their asset holdings. 
In addition, your payment will be protected against inflation.
The rents you charge will likely increase year on year to account for inflation. Thus, you will be able to ensure your income appreciates as the cost of living goes up.

 

2. Tax Benefits

Many real estate newbies remain unaware of this, but investment in properties comes with significant tax benefits. How?
Well, many of your investment-related expenses are tax-deductible. For example, things like property taxes, management charges, insurance, maintenance, and even the interest on your mortgage may be tax-deductible.
In addition, any profits you make by selling your property down the line won’t count as income. Instead, it is considered under the category of capital gains, and this comes with lower tax associations than income. 
And if you choose to invest in specific neighborhoods or areas? You may be eligible for even lower taxes! Be sure to look up ‘opportunity zones’ as the government offers tax benefits for those investing in these zones.

 

3. Build Capital (And Leverage Funds)

Building capital is the primary goal of every investor. You can do this by selling your property after it has appreciated.
But the good news with investment property is that you can build capital without buying the property in full. Instead, you can leverage funds to build wealth.
Taking out an investment loan or referring to mortgage lenders and credit unions is an excellent way to do this. You simply borrow money from them and pay them back over the specified period.
This allows you to protect your personal assets while building capital, which is the ideal investing situation.

 

Now Is the Time to Get Started On Your Investment Property

The benefits of investment properties are numerous. You can expect steady and reliable cash flow and significant diversification of your assets.
You can also use your investment property to start building generational wealth. It’s time to get investing!
Need help with investment property financing? At Corby Mortgage Services, we have a range of loan options for you!
Click here to check out our loan options today!

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