While the business world presents you with myriad ways of investing your money, real estate remains one of the best long-term options available. If you have some cash lying around or coming in, one investment option to consider is permanent rentals. These are properties purchased and developed for earning revenue. Read on to find why is rental property investments are the best move that you will make.
Available Noosa house rentals can be multi-family units or single-family homes. As the landlord, you make money by holding and renting the properties as they appreciate, and you can sell them for a profit. Here are the major reasons investing in a rental property or renting your existing property is always an excellent choice.
You are in charge
You have the freedom to choose the property you want to invest in, the type of tenant you want to rent to, how much rent you charge, and how you manage and maintain your properties. A Noosa house rental property investments management company can help you locate and maintain long-term tenants.
Your property is appreciating
Rental Property Investments provide you with a unique opportunity that you cannot find elsewhere. You may use a small amount of your money and borrow the rest from a lender—which is leverage. For example, when you invest $10,000 of your money and borrow $90,000, you can purchase a $100,000 permanent rental property.
Assuming that for 10 years your property appreciates by five percent, the appreciation is on the entire cost of the property and not only your investment. Therefore, your property will have increased value by close to $63,000 after 10 years. This means that your initial investment of $10,000 has yielded an appreciation profit of $63,000 using leverage!
Constant incoming cash
Permanent rentals provide you with rental income each month. Money left after you have paid for property expenses is money you can add to your bank account. Consider this, if you have a tenant paying $2,000 a month, subtract the maintenance costs, vacancy costs and other monthly expenses. When all is done, the money left over is your gross monthly passive income from the said property.
Assists with mortgage
The more you hold on to your rental properties, the more of your loan principals renters pay down, creating more wealth for you. Reducing the loan amount enables you to have access to more money by either refinancing the loan or selling the property after a few years.
Benefit from investment property tax deductions
Another major reason investing in Noosa house rentals is such a tempting proposition is the tax benefits. Australian landlords have various ways of reducing their annual tax bills, and such deductions often make the difference between achieving a positive cash flow and a negative one. So, what are the top tax benefits you can look forward to?
- Interest charged for a loan and associated bank fees
- Council rates
- Rental advertising costs
- Strata fees
- Land tax
- Repairs and maintenance
Investing in permanent rentals provides you with significant sources of wealth, including appreciation and positive cash flow. Richardson & Wrench Noosa property management services can help make your journey into the world of investment properties stress-free. Visit https://rwnoosarentals.com.au/ and start your journey towards financial independence.