Renting out your property is becoming a trend in the business sector. Yes, selling your property is still a valid option but the benefits of renting outweigh the advantages of selling your property. Here’s why:
1. Equity
What your house’s worth will depend on the housing market trends. However, trends show that the housing market continues to grow as the sale price of existing single-family homes increased. Property owners turned landlords continue to experience larger returns and are passive as rental prices increase.
2. Profit
If you consistently rent your house out for more than your mortgage payment and other expenses, you will grow your income profit over time. Although that’s not always the case, landlords turn to annualized tax benefits, real estate appreciation, and refinancing opportunities to make up for any monthly or short-term pitfalls. And if you eventually decide to sell your property when the market is good, you will eventually receive great returns on your investment.
3. Tax Shelter
There are a number of tax benefits to owning a rental property. You can forget all about o the expenses, just like Renters’ fees, utilities, repairs, mortgage interest, and property taxes, to name a few.
4. Avoid Loss in a Down Market
If the time comes when the market in your area takes a turn for the worst and selling your home is not an option, you can hold on to the property and rent it out until you can actually make a good profit from selling.
5. Protection on Inflation
Owning a rental property is a safe investment and a better asset that can make money during high inflation. It gains value when inflation is high and creates passive income from renting during any economic period.
6. Retirement Plan
Renting your property is a perfect retirement plan. We sometimes lack the discipline in saving or putting monthly deposits into our retirement funds. And owning a rental property is a commitment that requires you to manage and maintain for the long haul. A rental property can help you build greater returns in equity and cash flow.
7. Tax-Free Cash Flow
A certified tax professional can help identify taxes on your cash flow and defer taxes on capital gains if you sell your property in the future using a 1031 Exchange.
8. Vacation Home
The bright side of owning a destination rental property is, it can be a free vacation home for you and your family, and when you’re not there you can earn from it by renting it out. It’s really a win-win situation.
There is no harm in trying to rent out your investment property, we can help you in earning passive income and building your investment portfolio.