Julie Sagan GRI - Sagan REALTORS ®, Swampscott, MA Real Estate, Marblehead, MA Real Estate

3 Great Benefits of Investment Property

The opportunities real estate lends us are endless. From finding your dream home, to buying a family vacation home, to investing in rental property, your real estate agent is here to guide you through it all. It may seem a little daunting to invest in real estate if you’ve never done so, or can’t imagine yourself as a landlord, but the benefits of investment property are numerous! Let’s take a look at 3 great benefits of investment property that will put your mind at ease, and motivate you to explore your options!

Passive Income Everyone needs a place to live, and a source of income. If you invest in the right property and have tenants, you can establish a source of passive income. Passive income is a steady cash flow from rental income that requires little work from you. You can use that money to pay off your mortgage, to build equity, and after you’ve paid off your mortgage, use it as an extra source of income. 

Keeping and Adding Value Even though we can’t always predict exactly what the housing market will do,

your investment property has the ability to hold its value, and appreciate in value over time. Even if the market takes a dip, you can hang onto your rental property while still taking in income, and wait for the value to increase and the right time to sell. Instead of selling for less than you wanted, you can comfortably wait for the market to pick back up. The great thing about a home is that there are plenty of ways to increase its value. Adding amenities, fixing and updating old appliances, or improving landscaping can increase your home’s value. This allows you to rent or sell it for more. If you wanted to sell but it wasn’t the right time, renting out your property is a great way to make money in the meantime.

Stability Investing in a rental property means you will always have somewhere to come back to. Whether you have moved away, started the search for your own dream home, or relocated for work, you will always have a home as long as you hold onto your investment property. If your property is in a great location and is well maintained, finding tenants shouldn’t be hard. This means you will have a reliable source of income you can track.

The same real estate rules apply to your dream home as they do to investment property. Looking for ideal locations, ways to increase value, and being willing to take the leap are all keys to being successful homeowners!