Rental Investments: It is no secret that owning a rental property is a great investment. For one thing, they can offer a higher rate of return than other investments. This can be achieved without having to worry about the stock market. Colorado Horse Property has already compared rentals and mutual funds.
Some people’s main source of income comes from other forms of investment. Investments like certificates of deposit and from bonds at less than two percent. If you are one of them then you will probably be looking for an alternative. The answer is investing in rentals. Find out more about how rentals might complement your current investment plans. You cab contact your real estate professionals at Colorado Horse Property for help. Here are a few more reasons to invest in rentals.
Rental Investments: Reasons to Invest
- Expenses
When managing a rental you will come across extra expenses. Your tenant may ring you up and inform you that a bulb has blown. Fixing these issues can cost you some time but not money. Income from the monthly rent contributes to paying these expenses. So, you don’t have to come up with any extra money. Rentals pay for themselves. - Economy
Today’s economy is in the perfect condition to benefit rental owners. Increased rents, and low, non-owner occupied mortgage rates amounts to more money in your pocket and very favorable rates of return. - Depreciation/Appreciation
We all know that values can go up and down and that goes for rental properties. If you stay on top of the expenses that your rentals accrue, appreciation will be achieved as the value of the property goes up. - Control
Rental owners have more control on their invest because of leverage. Leverage can increase the return on investment. They do this by using borrowed funds to control a larger asset.
