There are an endless number of ways to invest money, but where is the smartest place to put your money? We make an argument that rental property is the best investment, and here are 5 reasons why.
1. You Can Use Leverage to Purchase Real Estate
Real Estate is one of the only investments you can get a loan for. By leveraging the bank’s money to help bolster your buying power, you can purchase a much more valuable piece of property and pay the loan off over time using revenue the property will generate over time.
2. People Have To Live Somewhere
Real Estate is one of the oldest investments for a reason, and they’ll always be a great investment because people always need a place to live, but don’t always have the means to purchase their own.
3. Sweat Equity Can Increase Your ROI
With Real Estate, you can actually put your own time and effort into renovating the property to increase its passive and resale value. Try that with stocks!
4. Rentals Can Be Predictable
If you have consistent tenants, you can reliably budget the money it returns in the form of rent. This makes it easier to offset any mortgage payments, maintenance, taxes or other costs you’ll inevitably encounter at one point or another.
5. Multiple Means of Profit
Not only do rental properties provide cash flow when they’re occupied, real estate is generally known to appreciate over time. Maintaining and renovating your rental property, and holding onto them for longer can rapidly increase your total return on investment.
Rental Property is a great addition to any investment portfolio, and one great way of protecting that investment is to screen any potential tenants to ensure you’re renting to quality prospects. Tenant Report offers quick and easy background checks, and any fees are passed to the applicant.