Knowing where to invest your money can be downright tricky. Everybody knows about savings plans, RSP’s, IFSA’s, and the like, but does that mean that these are the best option for your hard-earned cash?
For many people, an investment property is a smart decision that can help them put their money to work. Keep reading to learn why you should invest in property if you’re looking to add income without excess risk.
It’s CAN be Easy to Buy
You have to be qualified to buy real estate whether you’re buying your first home or an investment property. If you’re shopping the market and have a current mortgage, you might have a leg up over first-time buyers.
Further, buying property is often easier than getting a loan for different types of investments. Lenders are generally more willing to take risks on investment properties than they are on other businesses – like brick and mortar retail shops.
ROI, short for return on investment, should be on the top of your list of priorities. This applies to whether it’s a new business or putting your money into a savings account. When you use your money to buy investment property, on average you’ll have a higher ROI than most businesses. You’ll also have a better return on your investment than most stock programs can offer.
Buying investment property isn’t without risk. However generally, a well-vetted property can earn profits for the owner.
The concept of depreciation allows you to deduct the cost of a property while generating income. This is a major benefit for people looking to buy an investment property. It’s not the only tax benefit that’s relevant when it comes to this type of income though.
Any repairs to the home are also tax deductible. Some examples are putting a new roof on the property or even replacing cabinet hardware.
The cost of insurance premiums is also a tax deduction if you’re using the property as a rental. For investment owners, tax benefits can make owning an extra property very enticing.
Investment properties aren’t always a sure thing, but it’s about as close as you can get. Easy to buy with high ROI and tax benefits, the right property can help you generate income with little risk.