Investing in real estate may seem complicated. You need to compile a team, which may include an architect, agent, developer, lawyer and property manager, unless you plan to manage the properties yourself. With so many roles to fill, you may feel that getting into real estate Boston isn’t worth it, but these investments have many benefits.

Taxes

Investment properties have numerous tax advantages. For example, you can deduct depreciation, property taxes, insurance, maintenance and even travel expenses. Legal and other fees are also deductible. Not only can you deduct every expense related to your rental property, but your rental income is not subject to self-employment taxes.

Free or Low-Cost Assets

Your rental income should cover your mortgage payment every month. However, a good rental can result in an income that more than pays your mortgage. You may receive additional income that you can save for retirement or if the property needs work or is vacant for a period of time. Therefore, not only can your tenants pay for your house, but they should also pay to maintain it and keep it in good shape.

Appreciable Assets

Real estate is a long-term investment because it typically appreciates in value over time. The longer you have your property, the higher its value grows. Not only are you paying off your mortgage, but you are able to charge higher rent, and if you need to sell the property, you often can get significantly more than your purchase price.

Hedge Against Inflation

In addition, real estate acts as a hedge against inflation. For example, as inflation rises, so does your property value, which means you can charge more in rent. Therefore, while your mortgage payment stays the same, your income rises.

If you are looking for stable, long-term income and appreciable assets, consider learning more about real estate investment.

 

Benefits of Real Estate Investment

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