Have a property that you are currently not living in and need a little extra cash? If so, you might want to consider property investment. There are many reasons why people invest in real estate property. If this type of investment is working for other people, it will also work for you. However, you should learn as much as possible about property investment before you take steps to buy your first property. Below, you will discover a list of five reasons why you should choose property investment in other types of investment options.
You Remain In Control
The great benefit of property investment is you remain in control. Regardless of what type of properties you choose to buy, you have a say-so on how much to spend on each investment. You also have full control of who to rent your property out to and when to rent it. While some property investors choose permanent rentals, it is possible to make extra cash by renting out an investment property temporarily.
Some people like to invest in the stock market because it is not long-term. Of course, some investors will hold onto their stocks for longer; it is not always necessary to earn a profit. Well, the same thing goes for property investment. As mentioned above, you remain in full control of your property investment, which means you can sell it at any time. If you believe your investment was not a good one, you can sell it without consulting with anyone.
Pay Off Mortgage Faster
Homeseekers often struggle to come up with enough money to buy their first real estate property. Fortunately, you do not need to let lack of funds stand in your way of purchasing that home you always dreamed of. A technique known as House Hacking will give you access to the funding to buy a home. This process is viral among first-time homebuyers because of that very reason. With this technique, the investor rents out a portion of their property to one or more tenants. The rent is utilized to pay the mortgage.
If you choose to go this route, you will need to decide whether or not to pay more than your minimum mortgage payment. It would benefit you greatly to pay a little extra each month. Doing so will reduce the time it would generally take you to pay the mortgage in full.
Risks Are Fewer
Property investment has been described as less risky as compared to other types of investment option, such as stocks. The reason the chances are fewer is that equity builds up with time. The longer you keep the property, the higher the equity.
Receive Tax Benefits
Every taxpayer is looking for ways to reduce the amount they pay to the IRS. By choosing property investment, you could save hundreds, if not thousands each year in taxes. You are probably questioning how this is remotely possible. Well, the government does not classify money from investment property as taxable. All the money you will receive from your investment properties is tax-free.