123ArticleOnline Logo
Welcome to 123ArticleOnline.com!

ALL >> Real-Estate-and-Foreclosure >> View Article

Know About Buying Investment Properties

By Author: Nick Carter
Total Articles: 334

It is important fully understand the cost structure of the properties and to learn about how much income the property you are considering will bring in. You shouldconsider what your costs will be first, and include not only the mortgage, taxes and insurance but also operation costs such as repairs and the cost of hiring a manager or renting the property on your own. You should compare these costs to the income you can earn from rent. Remember, you cannot assume a 100 percent rental rate, so you need to make sure you will make enough on the property to cover your costs even when there are periods of vacancy.

You should also be sure that you understand all of the tax advantages to buying investment properties. It is possible, for instance, to take depreciation on the property in many cases. You can also take tax deductions for the cost of most repairs to the property. There are even special rules when you sell the property if you choose to invest the proceeds in another real estate project, as a 1031 exchange will allow you to invest the proceeds from the sale of the property while deferring taxes on your gains.

As you evaluate the costs of buying rental property, you should look at both the income you can generatefrom the monthly rents and the potential for appreciation of the property. With a rental or investment property, you make money when the property increases in value. Since the property market is depressed and property values are low right now, you have plenty of potential for gains as the market recovers.

The rental market is also a strong market now as the credit market is tight and many people are unable to buy homes. This gives you the potential to earn immediate monthly income that not only pays the mortgage on the property (which should be going up in value) but that also provides you with monthly income each and every month.


The author is a well Known Real estate Developer and contractor having immense interest and knowledge in property management, Turn key investment properties, Cleveland real estate investment, Rental Property Investment & much more hence also called to be as Property Guru. To know more visit on http://smartland.com/en/

Total Views: 85Word Count: 375See All articles From Author

Real Estate and Foreclosure Articles

1. Guide To Buying Land For Sale In Bodrum Or Istanbul
Author: Alina Abir

2. Buying Villas In Bodrum For Sale: What To Watch Out For!
Author: Alina Abir

3. How To Find And Retain Skilled Labour As A Building Contractor
Author: Mark Trescothic

4. Choosing The Right Real Estate Agent For Selling Or Buying Property
Author: Nishan Shetty

5. Benefits Of An Istanbul Villa: Why Buy Property In Turkey?
Author: Alina Abir

6. Villas In Turkey: How To Choose The Best Cities
Author: Alina Abir

7. Arlington Heights Real Estate Market Update April 2018
Author: John Herman

8. 6 Steps To Avoid A Real Estate Fraud
Author: Parveen Kumar

9. Pamper Yourself With Antriksh Officer’s Enclave
Author: Mohit Chaudhary

10. Apartment For Sale In Istanbul: Guide To Turkey’s Cities
Author: Alina Abir

11. Best Beach Cities And Buying Apartments For Sale In Bodrum
Author: Alina Abir

12. Sattigitti: The Premier Real Estate Listing Portal
Author: Alina Abir

13. 5 Reasons That Make Oakridge Condos More Desirable Than Others
Author: vivanwanghomes

14. 5 Things To Consider Before Buying Real Estate
Author: Shivam Verma

15. Buying A Home Is More Economical Than Renting And Much More…
Author: Mohit Chaudhary

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: