We should invest in property to rent?
When I talk to people who want to invest in real estate I often get this question: “Buy a house to rent it is a good investment?”.
My answer is: "Yup". And in this article I'll explain why.
Fare property investment income is an activity that, if done in the right way, can take the interesting gains.
Consider first that 'immobile is always a safe haven per i your savings. It can be subject to market trends, but it still remains a solid guarantee.
You just compare the real estate market with the financial sector to realize the greater solidity of brick than other forms of investment. Only with real estate you can manage to get the highest gain with minimum risk.
Even more, if you make some good income in real estate transactions in the residential sector: this way you can turn your property into an activity that can ensure a 'constant input e, at the same time, possession of a secure physical well.
so here 3 Reasons to buy homes and make them income.
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You have a double gain: income and property
I immediately start looking more important: your gain.
Buy houses to make them income means investing capital you have available for buying property and gain from the rent.
Property investment income will then allow me first to have a 'constant input “extra”, generated from precisely 'rent that the tenant pays you.
When you put your capital income is transformed into a tangible physical asset owned by you, which also get a gain significant monetary (is. from 5 al 7% annual) from the leasing, also being able to reach a yield of 10% with short term rentals.
With an income property investment then you have a double source of income: the monthly rent and the property of a safe haven.
The rent allows you to get back the money what do you have invested to buy property (with related costs and charges) and it guarantees you constant entry.
Being Property owner It is also a 'insurance for the future: you resell the house when you'll need (or to seize a favorable opportunity), or you can to live there or again transfer it to your loved ones.
Also remember this: a building never loses its intrinsic value. Even in times of crisis, there will always be people looking for homes.
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People are looking for houses for rent
While investing in income generating property can be a profitable choice for you at any time, in this historical moment Is additional benefits.
The biggest benefit is that today people I'm increasingly a looking for homes for rent compared to the past, especially some market segments (is. i Millennials).
I changes current on demand for real estate therefore they play in your favor.
The President of Assoimmobiliare, Aldo Mazzocco, stated recently that “the future of real estate is definitely residential and it is definitely rentals”.
In general, residential properties are of interest to a large and varied audience of potential tenants and therefore it becomes easier for you to find tenants.
You can carry out real estate transactions by choosing between different types of recipients: couples, families with children, elderly people, young, students, workers, single and so on.
As a real estate investor you can take into account the important current trend and consider purchasing a property to make it profitable, setting your operation to a precise profitable target, to ensure a good profit.
Read the study on 3 types of tenants to bet now
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The trend in rents is positive
Even the other trend rental market move in your favor.
Here's a brief overview so you understand what's happening today in the The rental market.
Rental contracts are on the rise: in 2016 there was a +15,6% Increment of the leases compared to 2015. We are therefore faced with a market in increase both in terms of demand that of 'offer of rented property.
Yields rents are recovering: with the crisis also rents decreased, but still less than the purchase prices and a more moderate decline in the residential sector. A Milano Prices rose with a +5%.
The taxation is more favorable today: as an owner you can take advantage of some advantages such as those of rate tax, reducing taxation on rental income and saving on the costs of registration tax and stamp duty.
Furthermore, rental returns are more constant than sales returns: in general, rents do not fluctuate too widely, if not in a very long time.
As you see, There are several advantages of investing in income-generating properties.
Per earn with income properties without risk you must acquire theright property, in a strategic area, evaluate the operation carefully in all technical aspects, legal and fiscal e reevaluate the accommodation to make it attractive to the potential tenant.
To better understand how a real estate transaction is carried out long-term with success I invite you to read the article on Milan Monochic case: you will find the story of all the investment phases with photos and videos.
If you want to make an income-generating real estate investment, look at the available operations in Milan or contact us to learn more about our proposals.
