The Power of Leverage – Houses as an Investment
Hey, who wants free money? Well, when I say free, it’s only free after quite a long time. Investment is a tricky, yet often lucrative venture. The basic principle is that you input your savings into something, whether it is a company or a product, and once that thing starts making money you get a return that is greater than what you invested. This usually works, aside from when the company you invested in goes belly up and makes no money at all. Does this work for real estate, you ask? Never before has there been a more certain yes! House investment is an incredibly lucrative enterprise for those who can afford to do it! For more details on why this is, read on!
House Investment is a Stable Investment
While there is always risk involved the real estate market is quite constant and thereby safer than the average investment. You don’t need to worry about whether or not the product will sell, or whether the company you invested in will actually be successful. With house investment you simply need to maintain the house and make sure tenants are happily renting away, giving you a stable return as time goes by! The initial investment may be more than most, but the return is stable and lucrative. Home extensions Oxfordshire
More often than not, the monthly rental fee the tenants pay you is equal to or greater than your monthly mortgage cost! This means that even though you technically borrowed money in order to gain access to the house, the tenants are actually the ones who are paying it off! Just wait! After a decade or so you’ll have a fully paid off house and you’ll start earning the monthly rent for yourself! How awesome is that?
Increase of Property Value
The value of property goes up slowly but surely as time goes by, especially if it is located in a region with a higher demand for housing! This means that as you pay off your mortgage, the house is increasing in value which you won’t have to pay for. After some time you may be able to increase the monthly rent fee or even sell the house for a profit and buy an even better one, if not several! The more property you invest in the more property value increase you will gain! Why be satisfied with one if there’s a way to get several?
Over the year you will need to pay taxes for the house as well as for general maintenance and things. It is possible that the monthly rent you are receiving is enough to pay for these as well as mortgage, but if not you will have to add a little of your own money to balance it out. If you thought this was a problem it isn’t. At the end of the financial year you can claim back all your taxes in full! Just think of it as a year long savings account that you can’t touch until the year ends! So what are you waiting for? Get out there and invest in a property now!