Buying an investment property can be a strategically sound and advantageous purchase. Having an additional property gives you the opportunity to gain financial security by taking on tenants in a rental unit or enables you to flip the property for a quick profit whenever you need to. Whether it’s a short term or long term investment, the bottom line is that buying an investment property can give you the financial flexibility you’re seeking. Here are just a few of the key advantages that can help you determine if you’re ready to take on an investment property and whether it’s the right move for you.
You Can Deduct Expenses
Whether it’s a second detached home in your current neighbourhood or a triplex elsewhere, an investment property gives you the opportunity to deduct expenses, which help to reduce your overall taxes. We’re talking about insurance, property maintenance costs, property taxes, and mortgage interest.
When you invest in a new property, it sometimes requires you to put a significant amount of money into it before it’s suitable to rent. Thankfully, if the costs happen to outweigh the income you receive from it, you get to deduct that loss when tax time rolls around. It’s a win-win!
Provides Stable, Predictable Income
One of the main factors why so many homeowners are choosing to purchase an investment property is because of the stable and predictable income they can provide. These days, it’s not difficult to find tenants who are eager to rent, and that monthly income puts extra money in your pocket to save, invest, travel, put towards an upgrade project, or to do whatever you please with.
Capitalize on Growth in the Market
If you’re concerned about the risks involved, consider the fact that investing in property is deemed as one of the smartest and most reliable investments a person can make, according to many leading experts. Prices may fall, but they will always rise. If you decide to sell your property, you get to capitalize on the growth of the market to benefit your bottom line even more.
Investing in an income property can end up being one of the smartest moves you make for gaining the financial flexibility and freedom you desire. Reach out to the Financial Forum today and get on the path to owning an investment property.