According to a recent survey, it is estimated that about 50% of the people in this world become millionaires through property investments. The value of a property will keep on increasing every year. For example, a property that worth about $5,000 forty years ago will worth 50 times more, which is about $250,000 today in the market. Property investment has been proven as a stable investment historically. If you want to increase the property value in the market, you can renovate it.
Property investment is not just for people who want to make money from investing properties but it is also for expatriates who are finding a place to settle down. When you buy a property, you want to make sure you are buying one that has high ROI. In this way, when you want to move out to a newer property, you can sell away the property at a much higher price tag in the market and earn some profit. The advantage of real estate investment is that you can increase your income stream through the properties you own.
Property investment is a more solid form of investment compare to other types of investments such as stock market. It has a potential growth in value in the future. If you decide to rent out the property, you can keep on collecting rental fees from the tenants every month. The rental income for investment properties have been increasing steadily over the past few years. The rental income rate has increased at a faster pace than the inflation rate.
Normally, the rental rate will increase faster than the inflation rate. The mortgage rate for the property usually will remain stable when there is inflation. Inflation increases the number of renters in the market because the cost of the property has become more expensive. Additionally, you may be entitled to tax benefits. Some of the tax benefits you may be entitled to include depreciation allowance, tax deductions and etc.
You don’t need to receive a high income every month in order to invest in a real estate property. People who receive middle range income can invest in the real estate properties as well. If you want to rent the property, you can state it in your loan application. The lender will calculate how much rental income you will get from renting the property. If you already own a home and it has accumulated some equities, you can use it as a deposit to make investment in the property.
Property investment is more difficult than stock market investment. After you purchased the property, you must constantly maintain it so that it will be in good condition. If you are equipped with good home improvement skills, you can repair the house yourself instead of hiring a professional DIY worker. Doing so will help you to save a large amount of money. If you can find a good tenant, you will be able to get a lot of profits in return for the investment. Before investing in a property, it is important that you spend some time to do research in the real estate market. This prevents you from investing in the wrong real estate property.