Have you ever considered setting foot in the world of real estate investment but don’t know where to start? Why not own a rental property?
Rental properties come with a variety of benefits and with home ownership rates at their lowest in the last 50 years, this might be the perfect time to own a rental property. Here are our top 3 benefits of owning a rental property.
Income from Renters
The greatest advantage of owning an investment property is that the leaseholders will give you an immediate pay stream. Those monthly rent dues will go straight with your bank account. Ideally, this would cover your cost for the month.
For instance, in the event that you rent your house for RM2,000 every month, that house when rented out for a complete year will put RM24,000. into your account. This is an attractive offer if you are looking to make some money on the side or if you are looking for financial security during retirement. Moreover, rental income is subjected to being taxed differently compared to your employment income.
Income from Property Value Growth
Another great benefit of owning a rental property is that your rent can increase on the property over time regardless of whether or not the property experiences any upgrades. Although, this is quite subjective to where your rental property is. In some areas, the value can increase over the years while in other areas it remains constant.
Sweat Equity
The other factor that you ought to consider is that your sweat equity is probably going to increase the value of the property as you maintain and redesign it. Doing things like putting up a fresh coat of paint, including new siding, refurbishing the inside and will enhance the value of your home without a significant expense. Not only would you be able to charge more on the lease, but it will also increase the value of the property itself should you decide to sell it later on.
If you are someone who enjoys home improvement projects, this ought to be a significant plus point for purchasing a rental property.
For certain individuals, owning an investment property may be a brilliant financial move to make. If you have some time and money to spare already why not take the leap on owning a rental property. Much like with any real estate investment, be patient and do your research in finding the best deal possible to get the most out of your money.
