When you invest your money, you want it to be in a worthwhile pursuit. Most importantly, you want a great return on investment. While there are innumerable investment opportunities available, few are as lucrative and exciting as investing in property. Here are three quick benefits (of many) you’ll enjoy when you invest in real estate:
While this isn’t the be all end all of an investment, it’s certainly a nice feature of investing in property. When you’re renting, you have predictable income that goes right into your pocket. This is happening while your property is gaining value and ultimately making you money. Not many investment opportunities offer this sort immediate gratification.
When you’re a rental property owner, you’re entitled to some pretty impressive tax write-offs. Interest on your mortgage can be written off. Purchases to upgrade and update your property can also be written off. Travel expenses, maintenance, legal fees, insurance, and more can be included in your tax write-offs and that’s good news for anyone come April.
In addition to these more obvious deductions, the government allows you to calculate the depreciation of your property value based on a schedule regardless of if your property is actually gaining value. Making money doesn’t get much easier than that.
When you have tenants paying your mortgage for you (and maybe above and beyond), you’re going to more effectively pay down the principal of that loan. The more money you can throw at the loan, the more principal you’ll pay down more quickly. The property will be of greater value to you since you’ll owe less money on it. When you go to sell, your profit will obviously be greater if you only owe a small amount on the loan.
If you’re interested in investing in property and want to get an excellent start, contact the experts at Applegate Properties. We’ll get you the information you need and more.