Fannie Hillman + Associates
Kirk Wright, Fannie Hillman + AssociatesPhone: (407) 435-2368
Email: [email protected]

Advantages Of Owning An Investment Property

by Kirk Wright 08/28/2019

There are so many reasons people invest in properties, tax purposes and earning more income are among the top. There are many ways to invest but investing in real estate can offer people of all ages the following benefits that make it a popular choice.

  1. Certainty of Income. The income you receive from your properties is certain. You get regular rental payments from your tenants depending on the agreed duration. If the property is in a good location, all the better. A good location is more likely to result in the property's value increasing, reduce the time it remains vacant between renters and create opportunity for higher rent over time.
  2. Stability. Generally, the property market is very stable compared to other investment markets. A lot of investments may depreciate as a result of bad news, poor management and a whole host of other reasons. Investment properties are bound by renters' contracts that entitle you to receive guaranteed income for a known term.
  3. Escaping Tax. I am not an accountant but many investors benefit from tax savings as a result of their Real Estate investments.  Talk to your accountant to understand how tax savings could apply to you by investing in real estate.
  4. Securing Bank Loan. Having an investment property in your name can make obtaining a bank loan easier. Any existing equity in the property can help you secure a loan or purchase another investment property with less stress than having to rely on income alone. Talk to a lender you trust to learn what options are available to you.
  5. Inflation. Inflation is a word that many dread to hear. Owning rental property or investments may work as a hedge to inflation. Talk to a trusted REALTOR® about potential home value & rental trends to gain an understanding if this approach would work for you.

There are a lot of advantages of owning investment property, making it a route to financial freedom and fulfillment. Investing in properties isn’t rocket science. Anyone can do just that provided there is adequate capital. Speak to a real estate agent today to discuss your options.

About the Author

Kirk Wright

I bought my first home in a small community on the shores of Lake Simcoe about an hour north of Toronto, Canada. Ironically, I couldn't wait for my mortgage statement to arrive each month so I could study it and mail in my payment (am I dating myself?). The statement would arrive. I'd scan the principal, revel in its reduction, then ask my REALTOR® what home values were doing in our neighborhood. It was intoxicating - principal down, home value up, repeat.

This home (actually a cottage) was my castle. I drilled a well to have running water year round, built a picket fence, painted the exterior, removed the shag carpet "insulation" off the walls and planted some flowers. It's difficult to convey how beautiful this home was to me.

Ultimately all the sweat was worth it 'cause I used the equity from the sale of that little property to fund my move to Orlando in 2001, my wedding and the down payment on our first home in the Milk District in Orlando.

Two years later we fell in love with a home in Winter Park's Dubsdread Heights neighborhood between Dubsdread Golf Course and Little Lake Fairview. Equity in our first home enabled us to refinance and pull out the necessary cash to use as a down payment on this second home. Now we were multi-home owners and landlords too!

Becoming a landlord brought the same sort of pride that came with buying my first home. Our tenants were wonderful, they LOVED the Milk District and never stopped thanking me for renting our home to them. In return, they paid us rent that covered the mortgage plus a little bit more. How awesome is that?

A year later our tenants were ready to become home owners themselves and moved to south Orlando. We put the house up for sale and our REALTOR® helped us secure nearly twice what we paid for it 3 years earlier. The American Dream was alive and well.

A number of years later we were in a position to buy our "forever" home, a beautiful home listed guessed it, Fannie Hillman + Associates. It is located in Orlando's Ivanhoe Village where culture, dining & nightlife are only as far as the end of the block. We kept our Dubsdread home and purchased the Ivanhoe Village property and became landlords once again.

For 16 years I helped local business owners grow their business using advertising and marketing and now I am thrilled to be part of the Fannie Hillman + Associates team as a REALTOR®, making my passion my career.

I look forward to using my experience to help you buy or market and sell your home.