5 Reasons to Invest in Rental Property (Apartment)

Image Credit

Investing in rental property is a great way to build wealth. There are many reasons why someone might invest, but the most important is to generate stable and dependable income. Read on to know five reasons why you should be investing in a rental property (apartment) for your 20s!

 It is a dependable income stream

Investing in property provides a dependable income stream. While the market is constantly changing, real estate has historically been regarded as an attractive investment for those who want to take on some risk while earning good returns over time. Unlike other types of investments that are more volatile and unpredictable, your rental properties will continue to provide you with steady cash flow each month – giving them a solid foundation for long-term success. 

In exchange for this dependable income stream, you will have to invest your own time and money into managing the properties. Therefore, you must remain fiscally prudent with how much of your finances are going towards property management fees and other expenses related to managing it on an ongoing basis. If you overspend in these areas, then there might not be enough left over to cover necessary repairs or unforeseen emergencies – which could lead to some significant consequences down the line.

So before taking on any rental investments, make sure that they can provide a reliable cash flow while still being manageable within your budget now and into the future. Sometimes you might feel overwhelmed if you don’t know where to start budgeting and you might want to use a c cell to help you calm down and focus.

Incentives through tax benefits

The tax benefits of investing in rental property include the depreciation allowance and the capital gains exclusion. Depreciation allows a portion of your investment to be deducted from your taxes annually. At the same time, you also get to exclude up to $250k from capital gains when selling (if held as an investment). In addition, there are many other incentives available through investments such as this that can significantly help reduce paying taxes. 

This is just one example! Incentives vary greatly based on location changes, so it’s essential to research what applies most closely to you before investing. 

Appreciation of asset value

One of the best reasons to invest in a rental property (apartments) is for its worth. The value of your investment will increase over time depending on several factors, such as:

  • Location- does it have good access to schools and public transportation? 
  • Price point- are there low-cost properties or luxury homes that you can flip? 

The rarer and sought after item is the higher demand for it and therefore less supply, which drives up the price. This means if you buy at the right moment then sell when values peak, you’ll see significant growth over time in your asset’s worth. 

Reduced debt by property income

If you invest in rental property, your monthly mortgage and rent income cover the other costs of owning a home. This includes insurance, repairs, taxes, utilities etc. When you have an average to high salary job or business with earnings needed for living expenses, then this is much less likely to be a concern. This is because any additional money earned will go towards paying off debt from higher interest credit cards and student loans than it would on a lower-interest-rate mortgage (though still best not to carry too much debt!). 

However, a renter’s wages might not cover all these expenses, leading them into more financial trouble. This is because they pay down their debts but cannot make payments on time and face late fees and potential loss of employment if they were fired for not meeting attendance requirements.

Consolidated property management

Investing in rental property means that you need to manage all of the properties. To avoid this, it is a good idea to consolidate your assets with one company and pay them an annual fee for managing your portfolio. They will then collect rent checks on behalf of their clients who have invested in rental properties, send out notices when leases are nearing expiration, and handle any repairs or maintenance issues associated with these units.

This way, you can focus on other aspects of property management like finding new renters, increasing revenue by renovating apartments within the building (such as installing modern appliances). But, at the same time, someone else takes care of routine tasks that come up during people’s tenancy agreement – such as changing light bulbs!

Conclusion

There’s no better investment than investing first in real estate (rental) properties while still young and capable enough to handle much riskier investments such as stocks or bonds. You cannot ignore the wealth-building potential: even small-time investors can acquire a small piece of property and make it grow to something much more substantial.

 

Affordable and Sustainable Home Additions That Will Save You Money

Saving money is in everyone’s interest. When it comes to your house, most people will agree that they’d use any tip to save money. Household bills can be expensive and often cost more than you need to spend. From your energy to your food, there are simple ways to save money with these sustainable home additions.

Solar energy

Solar energy can often be expensive to install. However, it can save you a lot of money in the long run. For instance, solar panels can soak up enough energy to power the entire house, which leaves you with little to no energy bills. 

Or, for more affordable sustainable options to save you money on energy, you can light up the exterior of your home with solar lights. The best solar post lights will help you light up the garden whilst saving money. Solar-powered lights soak up the daylight and use that energy to leave your garden lit up all evening.

Energy-saving bulbs

Speaking of lighting up the home, you can save money while lighting up the inside too. Using energy-saving light bulbs will mean that they use up less energy, which will mean a reduced energy bill. 

Seeing as they use less energy and conserve energy, you will achieve living more sustainably at home. When possible, ensure to always switch off the plugs when you are not using them. Although the electric device might not be turned on, it can still use up energy.

Grow your own produce

Growing your own produce is a great way to live more sustainably, eat better, and save money. You could use your garden or inside window space to grow fruits and vegetables. You will be contributing less to plastics due to the lack of buying produce in the supermarket. Furthermore, you will save money as you won’t need to buy produce every week. Instead, you can pick it fresh from the garden. 

The longer you grow your own produce, the better you will become at it. In no time you will be able to grow more produce and get to grips with growing enough to not have to buy it from the stores. 

Growing your own food will encourage you to eat more vegetables too, which is ideal for better health. 

Choose better habits

Choosing better habits at home can help you contribute less to climate change. Instead of spending your entire evening watching television, you could read or sew. Instead of always using electricity, you can switch off and do something that uses nothing that contributes to climate change. 

Additionally, you could cook more plant-based meals, which is great for the planet. You could integrate two or three days a week that allow you to cook plant-based for the family. In time, you will practice new recipes and eat fewer animal products. You will discover new flavors and enjoy the goodness that plant-power can offer. If you are not used to plant-based eating, there are plenty of recipe books that can inspire you.

 

Weekend Reading #2

Screen Shot 2015-06-25 at 12.18.37 PMHope everyone had a lovely week! This week has been quite a whirlwind. I’ve officially moved into my new apartment and have SLOWLY been unpacking…and when I say slowly, I mean hardly at all. I’m excited for this weekend. I’m planning a quick trip down to the OC to visit some friends. Hope you all have a fun weekend!

1. This BLT is everything I want right now.

2. How to do…anything and everything.

3. Now that I have a back patio, I can’t wait to grow a herb garden!

4. Who doesn’t love refreshing lemonade in the summer?

5. My friend Becca who I used to work with at BaubleBar, now works for this awesome new startup called LOLA. Sign up for their pre-launch mailing list!

6. The ultimate packing guide.

7. The top 20 pinned recipes on Pinterest.

8. Instagram has some cool new updates.

9. How to correctly cut produce using a knife.

10. This Blackberry Mojito looks BOMB.com

blogsig2-01