Investing in real estate is a great way to develop your wealth and financial future. As a real estate investment, long-term rentals have three key benefits that make them great for first-time investors.
1. Rental property values tend to rise with or beat inflation. This is key to any investment–you need to make sure that you get out what you put into it! It’s also critical that your investments beat inflation. Because property values rise over time (yes, we are aware of exceptions but this is why it’s called a LONG TERM rental), your investment will beat inflation rates.
When you sell the investment, you get the money that you’ve paid into it back–plus the appreciation in value. Additionally, when you want to sell your rental investment, you should be able to sell it easily since your rental is in a place where people want to live.
2. Rentals generate a second stream of income. A long-term rental presents the opportunity for practically passive income. Once you have your rental up and running, you get a check in the mail each month from your tenants for basically no work on your part, assuming you are utilizing a property management company.
As a result, you get a stable, second stream of income on a monthly basis from your investment in addition to building equity–something traditional investments don’t do. Like property values, the amount of rent you can charge goes up over time, meaning that your income stream will increase.
Plus, long-term rentals can be easier to handle than short-term or vacation rentals. Long-term rentals also aren’t subject to “vacation season,” which means that you get to have a steady stream of income year round *with great tenants in place.
3. Rentals offer tax benefits. You can save a lot of money during tax season because you can deduct expenses for your rental. The expenses you can deduct include owner and operator expenses and depreciation. Then when you go to sell your investment, you can use the capital gains tax deferral and keep your investment money going.
Long-term rentals can be a smart way to develop your investment portfolio and start investing in real estate, but there are a lot of details to understand. Want more information? Contact me 🙂
I'm Morgan and I love helping professionals in the aviation industry make their move to Atlanta as smooth as a greased landing. Whether its relocation, buying for the first time, or selling luxury and aviation real estate properties, I can help you transition smoothly.
2015 Sharpsburg McCollum Unit 110
Sharpsburg, GA 30265
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