Thinking about investing? A rental property is a solid way to build diversity in your portfolio. Real estate has been a tried-and-true investment for many years, and rental properties give you the ability to both create a business and invest in real estate at the same time.
Get Additional Income from a Rental Property
A rental property gives you two types of income: appreciation and rent. Over time, your property is going to appreciate in value. In nearly every area, that appreciation is going to be more than inflation. In other words, you'll be making a profit simply by owning the property.
In addition to the real estate appreciation, you'll also be getting income from your renters. In many areas, income from renters is many times the amount that a mortgage, property taxes, and upkeep and maintenance can cost. Even hiring a property management company will usually only cut into your profits a little.
People Always Need a Place to Live
The economy can be extremely difficult to gauge. You may not be able to determine whether tech stocks, for instance, are going to perform well over the year. Certain investment vehicles, such as the stock market, are naturally volatile. But people always need a place to live, and that means that the rental market is always performing well.
In many locations, the population is growing. This leads to an increased demand for housing. In these areas, it's going to be nearly impossible to have a vacant unit for very long; someone is going to want to live there. Thus, you can ensure that you'll have profit for a long time to come.
Leverage Rental Property for Future Investments
When you've purchased a property and begun to take profit from it, you've created an investment that you can leverage. You can take out loans against the equity in your property if you want to make improvements or purchase additional properties, and your mortgage loans will show the bank that you are trustworthy and reliable.
Many people start with only one or two properties and are able to get additional properties over time. This happens naturally, as they are able to purchase and rent out one, and then purchase and rent out another, and so forth; they can create a business starting with just one apartment or condo.
If you really want to get your money working for you, getting a rental unit is an excellent choice. You don't have to do a thing; once you purchase your properties, you can just get a property management company to handle the day-to-day tasks, and that's where we step in! Contact us today at Aria Properties to get started. For more information about real estate investments, sign up for our blog!