Why Should One Invest in Rental Property?
Investment in real estate has always been an attractive option for investors. Buying a property is considered one of the most lucrative investments. It is an ideal source of generating passive income for investors and in some cases, it is almost tax-free.
In this article, we will be focusing on rental properties, which is one of the significant reasons to invest in property as this generates monthly inflows. Further, there are two types of rental properties, i.e. commercial rental property and residential rental property.
Commercial rental property – requires bigger initial investments and more professional help. Also, the risk associated with commercial property investment is more significant. Further, in worse cases, there arise occupation issues with the tenants, leading to prolonged litigation matters. This is obvious that the returns from commercial rental properties are huge, but the principle required is not in everyone’s budget.
Residential Rental Property – investment in residential property is most lucrative and ideal for everyone. The principle required is less than the commercial property requirement and hence associated risk is also significantly less.
We have researched to identify the most important reasons to invest in rental property, emphasizing residential rental property.
1. Immediate Results and Returns
Monthly rental income is one of the quickest and most secure returns from a rental property. An additional benefit is that this rental income is tax-free for the property owners. Just from the first month of renting, the tenants start paying the rent as per the contract. For residential as well as commercial property, there is a down payment, also called security paid. This amount is paid to the landlord as a guarantee if any month’s rent is left unpaid or there is any damage to the property. Hence, your property is more secure.
The cities are overpopulated and the investment potential in residential property has increased much more over the years. Buying an own apartment in Islamabad is now possible. Cloud Tower1, an ideal project, located in B-17, has attracted a huge number of investors. It has an easy installment plan with only 25% of the down payment. Due to its location, it is guaranteed that you can easily rent it out and earn a secure monthly rental income.
2. Steady Income
The monthly rental income will result in the accumulation of more savings over a certain period. And you can further, invest this saving in another property. This saved money will be generated without further effort, which is the prime benefit of investing in rental property. Being a small budget investor, and market dynamics, the residential rental property is generating a more steady income. Such investors can either meet their expenses from monthly rental income or accumulate this money for further investment or spend it on some useable asset like a car, jewelry, etc.
The apartments in Cloud Tower-1 are unique in their architecture and have attracted quite a good number of investors. It has various size apartments, and you can choose depending on your budget. These apartments are ideal for investment purposes as well as getting them on rent. Hence, if you invest here, it is guaranteed that you will get a good amount of steady income.
3. Good protection against inflation
Inflation is hitting every economy and money today has less worth in the future if it is kept idle. This means that our purchasing power is decreasing day by day. Property investment is the best way to deal with inflation. What we buy today, will value more in the future. It means our money today will increase automatically in the future.
The best way to secure your investment against inflation is to invest in the most lucrative residential projects, like Cloud Tower-1 in Islamabad. This project has credibility associated with its brand. The location and ultra-luxurious design are other attractions. Since it is in the establishment phase, the prices are investor friendly. It is the best time to secure your savings against rising inflation and invest in residential rental property in Cloud Tower-1. For details contact + 92 348 111 55 05
4. Low volatility
Due to changes in demand and supply, there are always some fluctuations in the value of every asset. For example, stocks are usually preferred by investors due to dividends and capital gains. But the stock market is highly volatile. Comparatively, rental property is a more stable investment, and especially, residential rental property has extremely low volatility. The super easy example to make a better understanding is residential rental property will give your returns even in recession in the form of monthly rent.
5. More Control Over Your Investment
The loss in residential rental property is minimum as your asset can not just disappear overnight. The property is a tangible asset, so you will have more control over it. All you need to do is to complete proper ownership documentation while purchasing the property, and also a legal contract with your tenant if you are renting it later.
The bottom line is that investment in rental property generates monthly secure income and at the same time your principal asset valuation increases over time. Just make the move at the right time, when the market has good opportunities to invest, like cloud tower-1, a project by The Cloud Services, cloudtower1.com.pk. Residential property is in high demand and the prices are going up. Don’t waste time and save your money to lose its value in the future.