1. Security and stability
First and foremost, properties are almost always in demand, since everyone needs a place to live. While the housing market is notorious for its fluctuations, it is less affected by market changes and is more likely to provide fixed returns. Compared to other types of investments, real estate is therefore generally more secure and stable.
2. Cash flow
There is a high demand for housing, meaning that an investment property will likely provide you with a steady stream of passive income. This is especially true if your rental income is higher than your monthly repayments and maintenance costs. You can even use your rental income to repay the mortgage and any other expenses that arise.
3. Tax benefits
You may also enjoy tax deductions that allow you to maximize your tax return on investments. For example, any expense that you incur in the day-to-day operation of your rental property should be claimed against your income, which will reduce your tax.
4. Long-term investment
In the long term, the value of your real estate investment should increase, as should your rental income, if your property is in a high-yield area. Your cash flow should also increase, which you can use to then expand your investment portfolio.
While there are obvious benefits to investment properties, there are also drawbacks. Here is a quick look at the cons of investment properties: