There are endless ways to invest your money. One investment option to consider is an income property. This can be a great option for a number of reasons. Here are three benefits to consider.
- Rental Income Is Real Money
If you intend to place tenants in your investment property, you will be able to receive rental income. Any money left after paying your expenses will be money in your pocket.
- Property Appreciation
One of the most unique things about investing in real estate is that you can buy it using a small amount of your own money, while borrowing the rest, often four to twenty times more, from a lender.
- Tenants Will Pay Down Your Mortgage for You
The most popular type of loan is a 30-year fixed rate mortgage. It has an interest rate that will remain the same for the entire 30 year term of the loan. In the beginning of the loan, significantly more money is paid to interest than to principal, but by year 15, it is close to a 50/50 split. Therefore, the longer you hold the property, the more of the loan principal your tenants are paying down and the more wealth you are creating for yourself.