7 reasons to buy your first rental property NOW!
Are you thinking about buying your first rental property? If so, you're making a smart investment! There are many reasons to buy a rental property NOW instead of waiting. Read on to find out what they are!
1. The market is favourable for buyers right now.
The real estate market has been HOT in many areas over the past couple years, which meant some properties were going way over asking and there were bidding wars. Sellers weren't complaining, but it wasn't fun for buyers!
The market finally seems to be cooling off a little, which is in the buyer's favour. This means that buyers have more power when it comes to negotiating prices and getting the best deals. This is good news if you are in the market to buy a property! There are more choices available, and you can likely negotiate a lower price than you would have been able to last year.
2. Rental properties provide a steady stream of income.
Renting out property can provide a steady stream of income that you can rely on month after month, which can be helpful in any stage of your life (eg. saving for a wedding, a baby, your kid's college, or retirement). It's also a great way to build up passive income if your goal is to become financially free! As long as you calculate everything before purchasing to make sure the property's income will be more than all the expenses, you will have positive cash flow coming in every month. The earlier you start generating cash flow, the faster you can start benefitting from it.
3. It's a great way to build wealth over time.
Investing in real estate can be a great way to grow your wealth and secure your financial future. Over time, your investments will grow through appreciation, mortgage paydown, increasing cashflow from growing rents. This means you'll be able to enjoy a comfortable lifestyle in retirement and create generational wealth. Remember, it's all about time in the market, not TIMING the market. 😉
4. You can deduct mortgage interest and other expenses from your taxes.
Did you know that you can deduct your mortgage interest and other expenses from your taxes? This is a great way to save money on your taxes, and can add up to a lot of savings over the course of the year. This is great news for business owners and homeowners alike!
5. It's a stable investment that will appreciate in value over time.
Real estate is a stable investment that will consistently appreciate in value over time. Whether you are looking for a place to live or an investment property, real estate has historically proved itself to be a great choice. Even in today's market (which seems expensive to many) real estate is a sound investment that can provide you with long-term financial stability. Real estate always seems expensive at the time of purchase but then most people are VERY happy they bought it 5 or 10 years down the line (when the purchase price doesn't seem so expensive anymore!) Not only will your home likely increase in value over the years, but you can also enjoy tax benefits and deductions.
6. You can use the property as collateral for a loan if you need money later on.
Yes, you can use the property to secure a loan from a bank or other lending institution! This can be a great option if you need money later on and don't want to sell the property. In fact, this is what most real estate investors do! They keep recycling the equity in their properties by refinancing and getting HELOCs. Keep in mind that there are risks involved with using property as collateral, so make sure you understand what you are getting into before you sign any paperwork.
7. It's a great way to diversify your portfolio.
Investing in real estate can be a great way to add some diversity to your investment portfolio. There are many different ways to invest in real estate, and it can be a great way to protect your assets and generate additional income and build wealth over time
If you're thinking about buying a rental property, now is the time to do it! There are many reasons why this is a smart investment, and you're sure to reap the benefits for years to come. So, what are you waiting for? If we could do it on a regular salary and no prior knowledge of this stuff, so can you! Get out there and start looking for your perfect investment property today!