The end of the year is approaching, which for some means
that Real Estate investments are increasing. For most, it means having bigger
and better properties to invest in, but there’s one part of the market that is
being pushed aside: buying rental properties.
Some realtors aren’t too fond of having tenants in
their properties, mostly because renting involves more of a closer follow-up,
and it’s something that people who are beginning in the world of real estate
can’t handle easily.
On the other side, being the ideal tenant has its cons,
such as following deadlines closely, trying to keep up with the contract
clauses, and more. So, before buying exactly what you’re looking for, renting is a good start.
And for all the realtors out there: rentals are the
perfect market and we’ll tell you why.
Know your market
Buying rental properties isn’t for everyone, and
that’s a fact. That’s why you should get to know where you’re investing.
- Know your leverage: believe it or not, real estate is one of the markets where banks are your allies;
- Tax-based strategy: when you’re checking out properties for possible rental purposes, it’s important to know the real market value. Thanks to mortgage deductions and depreciation, your cash flow is tax-free, which will allow you to have more earnings over time;
- A retirement plan: saving isn’t really a priority for most, but whether you’re thinking about buying a property to rent or you’re thinking about renting, saving is a full commitment. You must pay and invest a lot to eventually find stability, but it will be worth it at the end.
“Why shouldn’t I have this?”
Is a house with a pool really a priority?
While for many this is a valid approach, this won’t
help you get the one property you need. It doesn’t matter if you’re buying to
invest or you’re looking for a place to rent; instead of focusing on the
details, try and think about the big picture: why should you have this?
Think about the things you need and the time you’ll be
spending there: whether you need a place to live close to your work or a
business venture; it’s all about practicality.
Doral Riches is here!