If you’re looking to diversify your business portfolio, real estate is one of the best investment tools that can give you good long-term profits, according to Kimberly Dey, President of Renaissance Property Associates. You can buy an apartment or commercial building and earn passive income from the rental fees you collect from your tenants every month.
When you utilize this real estate investment tool, you can grown your financial portfolio without breaking a sweat. Why? Because, as Kimberly Dey says, you won’t have to check it every day, perform tasks to make sure that the rental building is functioning properly, or personally address the complaints and/or concerns of your tenants. Your property manager can do these for you, and more!
To expound a little further, Kimberly Dey shares the top three ways real estate investments can benefit you:
1. Self-generating investment
Supposing you purchased the property through a mortgage loan; the income generated from the rental fees can pay for the loan, as well as the upkeep of the building itself. The net income can go towards your savings. In other words, it’s an investment that pays for itself, and then some.
2. Security against inflation
When inflation hits, your rental property gives you a certain layer of protection because just as commodity prices increase, so too does everything else, including rental fees. In general, property values may also increase, which means the value of whatever type of real estate you invested in can also appreciate. All in all, you’re looking at earning a substantial profit, adds Kimberley Dey.
3. Tax benefits
Property owners may enjoy a few tax benefits from their rental property. Depending on the size of the rental property, you could enjoy tax deductions on mortgage interest, property tax, operating expenses, casualty and theft losses, and such. Kimberly Dey recommends that you consult with a tax expert, or a lawyer to learn more about your tax benefits.
There you have it; the top three ways cash flow income from real estate investment can benefit you. There are several other benefits that you can enjoy from investing in a real estate rental property. If you wish to learn more about, please feel free to send your questions to Kimberly Dey through this site.
Stay tuned for more posts on real estate investment from Kimberly Dey.