Investment Properties
Helping you generate increased cash flow.
Buying an investment property is easier than you think and can provide you with a regular cash flow to benefit your lifestyle. Investing in real estate is a good way to grow your equity, while having the amortization of your mortgage paid for you by your tenants.
Benefits of Buying An Investment Property
There are plenty of good reasons to purchase an investment property. Investing in a residential or commercial property can help you:
1. Improve your financial diversification
One of the most important things you can do to improve your financial situation in the long-term is to diversify your investments.
Retirement funds, bonds, and market stocks are susceptible to market volatility. Investment properties produce a stable return and are generally better insulated from market fluctuations.
Historically, home prices and rental rates rise as inflation rises. The mortgage payments for your investment property will not be impacted by inflation and you can benefit economically from this scenario.
2. Inflation hedge
3. Generate cash flow
Rental income will provide you with regular cash flow, which will help you live the lifestyle you want. If you budget accordingly, and ensure that you put some money aside each month for maintenance costs, you will be generating a secondary income stream for yourself.
Property owners are eligible for a variety of tax write-offs that will assist in offsetting costs including: your mortgage interest rate, your insurance, maintenance and repairs, travel expenses, legal and professional fees, and property taxes.
4. Take advantage of tax benefits
Top 3 Questions To Consider Before Buying An Investment Property
Consider your location very carefully. Examine area growth patterns, regional demographics, the job market, and historical sales data. You want to take into consideration as many pieces of data that you can to find the best location and property for your investment.
Consider how long it will take you to travel to your investment property from your home or work. Be sure to account for winter driving, the cost of gas, and the time spent going back and forth. Also, consider if you are likely to move from your current primary residence in the near future, as this could impact your distance.
If the area that you live is experiencing steady growth, offers a solid job market, and has seen valuations increase, then you may want to purchase an investment property in your location. On the other hand, you may not want to have all your real estate investments in one region, in case something changes in the long-term. Be sure to examine big picture trends when making a decision.
How Fran Can Help
“Time and again I have seen clients benefit financially from purchasing a second property as an investment. Whether you are looking for a residential or commercial property, I can help you get it done.”
Purchasing an investment property offers many possibilities and benefits. You want to work with someone who will help you understand the best options so you can make the right choices. Fran will help you get the best mortgage for your investment property needs.
