If you\u2019ve ever thought about purchasing an income property, keep reading! Here are a couple reasons why owning a rental property is a good investment.<\/p>\n
Purchasing real estate is one of the best ways to protect your investment portfolio against inflation. An article written by Jeff Rohde for roofstock.com<\/a> explains, \u201cRental property also acts as a hedge against inflation, when rent prices and home values increase faster than the annual rate of inflation. Here\u2019s how the math works. According to the U.S. Bureau of Labor Statistics, the 12-month percentage change in the Consumer Price Index (CPI) is 5.3%. However, even though prices are going up, home prices and rents are rising even faster.\u201d What does all this mean? Simply put, you won\u2019t lose money on a rental property investment in this economy. Historically speaking, your home or rental property will be worth more over time and you\u2019ll likely be able to raise rent as well.<\/p>\n To give you a better idea of how dramatic home values have risen, here\u2019s an example. The above mentioned article goes on to say, \u201cZillow notes that the value of a typical middle price tier home in the U.S. increased by 17.7% over the past year (through August 31, 2021). Rents have risen nearly as much. As the Q2 2021 Single-Family Rental Investment Trends Report from Arbor Realty Trust, Inc. reveals, vacant-to-occupied rent growth has accelerated to 12.7%, setting a record high.\u201d These drastic increases highlight what a great investment rental properties can be.<\/p>\n Passive income is a beautiful thing. It\u2019s also one of the best parts about owning an income property. Who doesn\u2019t want to make money without having to work? Having a rental property allows you to collect money from your tenants. Price your property at a rate where you can pay the mortgage and any other operating fees. You also want to make sure you\u2019re making some money for yourself every month as well. If you\u2019re unsure of the monthly price range in which you should rent your property, check out comparable rentals in the area. Those numbers will be a great jumping off point.<\/p>\n There are quite a few benefits you receive by being a landlord especially when it comes to filing taxes. The tax code allows you to write off things like property management fees, repairs and\/or maintenance, mortgage interest, and property taxes. There are additional write offs a rental property owner can claim such as travel expenses and continuing education expenses. Make sure you contact a tax professional to help you file. You may not be eligible for every deduction; however, there are likely some you qualify for that aren\u2019t listed here.<\/p>\n Making the decision to purchase a rental property is huge. It\u2019s requires committing to a large new debt and taking on the responsibilities associated with being a landlord. However, a rental property is a great wealth building strategy and it\u2019s worth the investment.<\/p>\n","protected":false},"excerpt":{"rendered":" If you\u2019ve ever thought about purchasing an income property, keep reading! Here are a couple reasons why owning a rental property is a good investment. Inflation Protection Purchasing real estate is one of the best ways to protect your investment portfolio against inflation. An article written by Jeff Rohde for roofstock.com explains, \u201cRental property also… Is A Rental Property A Good Investment?<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":1472,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[32],"tags":[62,63],"class_list":["post-1471","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-home","tag-rental-investments","tag-rental-properties"],"_links":{"self":[{"href":"https:\/\/homesweethomeowner.com\/index.php\/wp-json\/wp\/v2\/posts\/1471","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/homesweethomeowner.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/homesweethomeowner.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/homesweethomeowner.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/homesweethomeowner.com\/index.php\/wp-json\/wp\/v2\/comments?post=1471"}],"version-history":[{"count":1,"href":"https:\/\/homesweethomeowner.com\/index.php\/wp-json\/wp\/v2\/posts\/1471\/revisions"}],"predecessor-version":[{"id":1474,"href":"https:\/\/homesweethomeowner.com\/index.php\/wp-json\/wp\/v2\/posts\/1471\/revisions\/1474"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/homesweethomeowner.com\/index.php\/wp-json\/wp\/v2\/media\/1472"}],"wp:attachment":[{"href":"https:\/\/homesweethomeowner.com\/index.php\/wp-json\/wp\/v2\/media?parent=1471"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/homesweethomeowner.com\/index.php\/wp-json\/wp\/v2\/categories?post=1471"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/homesweethomeowner.com\/index.php\/wp-json\/wp\/v2\/tags?post=1471"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Passive Income<\/strong><\/h2>\n
Tax Benefits<\/strong><\/h2>\n