Investment property is defined as a landed property or building that provides a definite return on investment.
The return varies from one property to the other, depending on many factors and the two main factors include the rental income and the capital gains.
Other factors to consider are the condition of the property, whether it has any needed improvements, repairs and the neighbourhood.
While there are no set rules when it comes to investing, you can still apply some strategies to reap maximum benefits from your investment.
The Important benefits of investment property are:
1: The ability to increase your net worth: You will receive income every month from the rental units you have invested in which can also help in paying off your mortgage, leaving you with nothing but an investment property.
This makes rental property a very viable option for homeowners who want to make a home that will always be worth something and the value of your investment will increase over a while.
2: Another important of investment property benefits is the creation of passive income: This refers to income that can be reinvested which will easily increase your financial net worth.
With a rental property, there is almost always some residual rental income that stays untapped and with such passive income stream, you do not have to worry about the money to hire professionals to maintain the property.
All you need to focus on is generating as much rental property income as possible and eventually earning enough to pay back your mortgage and eliminate other debts.
3: Another of the valuable Investment Property Benefits is that rental income is generally tax-deductible: Investing in a rental property can help you reduce the amount you’ll have to pay on taxes. For example, by making improvements to your rental property, you can increase its rental income and be able to deduct this money from your taxes this also holds if you are investing in a business, such as a restaurant.
4: Aside from tax write-offs, another benefit of Investment property benefits is the fact that investing in rental properties will often bring you positive cash flow. This cash flow will allow you to get things done even when you’re not financially buoyant and will let you make purchasing other things more comfortably.
As a result of the positive cash flow, many investors choose to buy even more properties. These investors typically end up making more money than they would by renting out their rental properties.
A helpful tip when looking for investment property is to hire a Real estate brokerage firm. These firms have professionals and experienced real estate agents and consultants who know how to deal with landlords and tenants, they also have access to many resources you might not have.
For example, they know the market trends and also which locations are more likely to generate a significant income compared to others.
As a Real estate property investment Adviser in Dubai, part of my job is to guide my clients and prospects in making the right investment decisions, by providing then the best investment properties in the Dubai, payment plans and guide through all the necessary investment processes.
In my next blog post, I will be sharing a list of best Investment properties in Dubai, their location, developer and their payment plans.
If you find this blog post helpful, comment, like and share with your networks and contact me for any property requirements or advise in Dubai.