Residential property investments are one of the most common forms of investment opted by many. It is not only a great way to earn extra income but also guarantees financial independence in the long-term. Residential properties comprise of various types such as family homes, condos, apartments, townhouses, and so on. Real estate investors can either invest in them for a short or long-term benefit. While there are many ways that one can earn income, let us see why residential properties are the best way to make money.
Good Rental Income
Rental income is one of the common reasons why people choose to invest in residential properties. With the right location and tenant, real estate developers can secure a good amount of income for years to come, until he/she decides to sell the residential property. Moreover, the value of real estate investments increases with each passing day, thus giving the real estate developer a higher return when sold.
Multiple Tax Advantages
Another great perk of residential property investment is tax advantages. A residential real estate property is entitled to tax breaks for property depreciation, property insurance, travel expenses, legal fees, and property taxes. Moreover, the government also provides lower tax rates for those investing in long-term real estate investments. Such tax advantages prove to be highly beneficial for many real estate agents who buy residential properties.
Residential property investments are safe real estate investments and are almost risk-free. For those residential real estate developers who aren’t that keen on taking risks but what high rate of returns on investments, then residential property investments are the best option.
Airbnb your Residential Property
When residential property owners rent out residences, it doesn’t necessarily mean that it must be for a long term. Airbnb is a great way to rent out your home to travellers for a short period. Airbnb rentals are one of the most common and profitable types of residential real estate investing, thanks to the increase in travellers looking for places to stay for a short period.
In conclusion, most real estate investors are attracted to residential properties due to the lower risks and higher return rate. However, before investing in a residential property, make sure you do your homework and conduct a real estate market analysis to find the best properties that deliver a positive return on investment.