Whether you're a property investment geek, or just looking to get started in this profitable investment avenue, we can help!
Why get into property investment?
Between 2004 and 2014, the national home ownership rate fell 9%. Several factors may explain this drastic shift away from homeownership. Home values have risen faster than wages, making it more difficult for many renters to afford. In addition, the younger generation prefer to rent, and as a result, they make life decisions such as marriage and childbearing later on. The resulting trend is that millennials are staying in the rental market through their 20s and mid-30s.
With renter households growing at a faster rate than owner households, landlords are at an advantage in the rental market. With the current investment potential of real estate, you may want to take a good look at the benefits.
1. Passive Income Source - The best thing about having rental property is that it is a passive income source. This means that it requires little effort to maintain and is therefore a recurring revenue source. It can be a nice addition to one's existing financial security or retirement income, or it may be a good thing to do on the side if one has the time. In addition, rental income may be taxed differently than regular labour income.
2. Greater Security - Some people have to make a temporary move for work. Others inherit a family home that they don’t want to sell for sentimental reasons. There are a variety of reasons that people may find themselves with an empty property. A vacant home is potentially left open to vandalism and squatters, and maintenance issues gone unnoticed that can quickly escalate into larger problems. It’s hard to always keep an eye on a home you aren’t living in. Renting the property out to tenants can give you greater peace of mind that the home is being maintained and watched after.
3. Flexiblity To Sell At The Right Time - Say you’re ready to move, but the market conditions aren’t the best. Rather than selling your property for a loss, you can rent out your property until market conditions improve. Renting out your property gives you the flexibility of selling once you’re in a better position to make a profit off your property.
4. Property Value Appreciation - Say you’re ready to move, but the market conditions aren’t the best. Rather than selling your property for a loss, you can rent out your property until market conditions improve. Renting out your property gives you the flexibility of selling once you’re in a better position to make a profit off your property.
5. Diversification Of Investments - owning rental property allows you to diversify your portfolio, which can serve as an added layer of protection against risk. It can also potentially help you take advantage of positive market swings.