Wouldn’t we all like to have a little more time in our lives for the things we value most? Spending less time at work and more time with friends, family, and favorite hobbies is an ideal we all strive for. Working less, however, can add financial stress to your home, and as a parent that stress can bring unwanted detrimental effects to the place that is intended to be a sanctuary. If you have the option, owning assets that produce income is a fantastic way to work less, and live more. One of the most productive ways to create positive cash flow without spending more time at the office is through the passive income generation of being a landlord.
The power of real estate investing is dramatic, and its benefits can change your entire financial future.
- Real estate investing pays high income that’s relatively secure
- It’s not very volatile
- Real estate is simple, predictable, and consistent
- It protects against inflation while yielding 10%-15% annually
What is an income property?
An income property is just what it sounds like. It is a property bought or developed with the intention of earning income on it. Income properties can be residential properties, such as single family homes, or multi-family properties, or they can be commercial properties. Money is generally made through holding the property and renting it out with the help of Raleigh, NC property management, or selling the property after the value of the property has appreciated.
You’re the boss
When you take the plunge into property investment, you become your own boss. You choose what property to invest in, which tenant(s) you will rent to, and how much you will charge in rent. In the average 9 to 5 job, you are subject to the wishes and demands of your boss and the company you’re employed by. When you decide to invest in income property, you have complete freedom to decide for yourself how your investment should be managed.
Feelings of Appreciation
One of the unique advantages of investing in rental properties is that you can buy with a small amount of your own money, and leverage your investment into a considerable profit through appreciation. Appreciation is the increase in a property’s value over time, so over the course of owning your property, the value of your investment grows.
Rental Income is Real Money
When you rent your investment property to tenants, you will be able to receive rental income. Any money left after paying your expenses is money in your pocket. Making money through passive means allows you to spend more time doing what is important to you, allowing you more opportunity to live your life on your terms.
As a rental property owner, you are entitled to huge tax deductions. You can write-off:
- Interest on your mortgage
- Interest on credit cards used to make purchases for the property
- Property taxes
- Maintenance repairs
The ability to reduce your taxable income through your rental property investment pays huge dividends come tax time each year, and who doesn’t want to reduce their tax burden?
Management Made Easy
Not only is real estate investment and owning rental properties a safe and reliable source of income, but it offers you the opportunity to sit back, and enjoy the things that really matter. As a rental property owner, there are many great property management firms that will take care of all the nagging nuisances that come along with maintaining your property. Utilizing a property management firm reduces the headache and stress that come hand in hand with rental properties, allowing you to work less and live more.