Ask any property consultant, and they will tell you that investing in real estate here in Burnside, Victoria is one of the surest ways to retire early and increase your wealth. Unlike flipping and wholesaling that require a lot of work, buying rental properties guarantees years of consistent cash flow with little management.
Here are four more reasons to consider this type of investment.
You get to build up equity
Your rental property appreciates in value over time, which means you get a huge paycheck should you decide to sell or refinance the property after a while. Additionally, the income you earn on the property may be enough to offset your equity investment in your property.
Rental property is a smart alternative to selling
Some investors make lots of money flipping property. Unfortunately, the real estate market can go through a huge slump at times, and selling at such a time may not be a good idea. If you have rental property, you have a guarantee of some income as you wait for the market to improve.
Additionally, you still get to build equity as you ride out a bad market.
You get fabulous tax benefits
Landlords are allowed to write off numerous expenses that are related to managing their property. For instance, you get to write off mortgage interests, insurance costs, repairs, depreciation, legal and accounting expenses, and any other expenses associated with running a business.
All these write-offs usually translate into higher profits for you.
You get to be your own boss
Rental property is the perfect alternative to employment. While you may not make enough money in the beginning if you only depend on one property, as you build your portfolio you can actually turn rental income into your livelihood.
Investing in rental income can create you great wealth over time. With enough research and forethought, you should navigate the industry with reasonable success.