If you want to make money, there are a few options that are always available and property is one of those options. However, the layman tends to stay clear of investing in property because of the perceived risks. You will have undoubtedly heard horror stories of investors who overstretched and spent a considerable chunk of time trying to recover. Of course, not everyone has the same experience, and yours could quite as easily be a positive one as long as you do it by the book. Frankly, there is a lot of money to be made for those of you who take the plunge, and here’s why.
Little To No Decline
The property market very rarely declines to a point where it causes trouble. For the most part, property is very much in demand and the supply is short. When this equation raises its head, there will always be someone who wants to take it off your hands for a reasonable price. Take London as an example. Property in London is in that much demand that pokey flats in not-so-areas are selling for a quarter of a million pounds. In a lot of people’s’ eyes that is a solid investment, which is why you should think twice before passing up an investment property opportunity.
Bide Your Time
But, when a crisis does strike it doesn’t mean that you fall to the ground and you are not able to get to your feet. If there is another recession, all you have to do is bide your time until the hard times pass. Once the economy starts to flourish again, there will be a plethora of suitors on your doorstep inquiring about the price. As long as you have the money to keep up with the mortgage repayments, you can always wait until you spot the right opportunity.
However, the chances are that you will be able to cover the repayments because you can rent your property instead of selling. To begin with, you might have had dreams of a quick turn around and a huge profit margin, but sometimes you have to change strategy. Regardless of the state of the economy, renters will never die. In fact, when money is tight, it makes renting a much more plausible option. People need places to live whether it is a good time or a bad time, and that is something that will never change.
And, as a rental property owner, you are entitled to tax deductions. Okay, the government might not give you any money back, but they won’t take it away either. The result is that you have more cash in your pocket. Rental property owners are allowed to write-off interest on your mortgage or on any credit cards you used to make the purchase. Plus, you can claim a range of tax on the property, from maintenance repairs to travel expenses and legal and professional fees.
Money In Your Pocket
At the end of the day, whichever method you choose, it is all money in your pocket. You can use that money to pay off your mortgage or as a nest egg for your future retirement.
Doesn’t that sound nice?