Should I buy or rent a residential property investment? Chances are you’ve come across this question a number of times and chances are you’ve found it particularly hard to answer.
It’s no surprise that the question proves difficult. After all, we all have our reasons and we have unique circumstances and preferences. However, we should still dwell in the facts and spend adequate time weighing between the alternatives to better understand which of the two proves to be more beneficial.
To help us do that, we’ve compiled a list of benefits that go with each option. Here, take a look.
You build equity as time passes by. – In other words, each payment towards the purchase of the property adds up to one’s assets. We love equity because it represents ownership.
You end up owning the property. – Once full payment is completed, the title transfers to your name. It becomes your asset and therefore something you own.
You can do whatever you want with it. – In terms of renovations, improvements or upgrades, there will be no mandates or rules to live by. This means full creative freedom. You can even sell it or lease it out too whenever you deem necessary. That constitutes to another benefit which is income.
You enjoy tax deductions. – Some expense items may be considered tax deductible thus lowering an owner’s total income payable at the end of the year. Plus, other benefits like federal tax deductions and homestead exemption may be availed where applicable.
You don’t have to spend huge upfront. – Buying is very costly and requires a significant sum. That’s not very appropriate and practical for others that is why renting becomes more favorable as it will require significantly less upfront.
You spend less on repair and maintenance. – Depending on the lease contract, the costs and responsibilities involving asset upkeep shall be born mostly by the landlord.
You don’t suffer from market fluctuations. – When something goes amiss in the real estate market and home prices drop, you don’t suffer a huge loss. Rather, there’s even a chance that rental prices lower to encourage more tenants and to signify the current market value of the house.
You can move in and out easily. – When leasing a residential property investment, there’s no fear that a huge chunk of one’s cash is locked within the asset making it easier to move if the situation calls for it.
When one puts their hard earned money on a residential property investment, one wishes to get a return. This is regardless if you want to sell or lease the property or use it for yourself. To do that, you will want your asset to appreciate instead of depreciate. The latter is common and it happens to most assets. Once that has used up the value of your property, it is now deemed worthless and selling it should you need to will not provide a profit any longer. It can either come up with a salvage value or none at all. So how do you avoid this? How can you increase the value of your investment instead? Take a look at the following list and find out.
Keep it in shape.
This means that proper maintenance must be present. Make the necessary repairs as needed. Do not skimp on your regular inspections and maintenance procedures. Remember that the longer you leave damage unattended, the worse it tends to become. Also, prevention is always better than cure. Ongoing costs are part of any property investment and you should do well to provide for them.
Upgrade where needed.
Adding to the property’s value will also have to deal with the upgrades that you do for it. This includes rewiring of old electrical units, repainting walls, changing up dated fixtures, adding plants on the front porch and back lawn and even to the smallest details such as cleaning up the attic and garage. Small or huge, upgrades can turn into a cost that can be capitalized and thus add value to the property.
Be wary of location.
Before buying the residential property investment, take into consideration its location. Add into that the other nearby and adjacent properties, structures and establishments to it. All of these will have a bearing on the value of the asset over time. For example, areas such as huge and thriving cities (e.g. London, Sydney, New York, etc) tend to rise than fall. This is because the demand for assets in such location grows but land as we all know does not multiply. In economics, this creates an upward surge in value. The same holds true for those that are near commercial hubs, roads and highways, educational institutions, shopping centers, parks and hospitals.
If you want your residential property investment to appreciate, keep these three in mind and be sure to apply them aptly. For more property advice visit this page singerviellesales.com
After having made a residential property investment for yourself and/or your family, we’re pretty sure you’d be itching to do some renovations and decorating. We do not blame you because we know that feeling too! To help you out in spicing up your place, we at Singer Vielle, have come up with the following ideas to help you make the home of your dreams.
Paint your walls.
It does not get any simpler than this. Putting on some fresh coat of paint not only adds personality to the rooms but also improves their look. If you are buying a place that has been previously owned and inhabited then some of the colors may already be falling apart or if not, they may not suit your liking.
Create accent and focal points.
Sometimes paint on walls does not cut it. They can appear bland and boring. To help fix that, you may want to make use of a pop of color either with another paint hue or textured or patterned wallpaper. This can be placed in only one side of the room to make it appear like an accent area. It’s actually a pretty neat, simple and affordable way to spice things up.
Add some fresh natural details.
If you want to add more zest, calm and freshness to any room, put in some plants. The best options here would be succulents and air plants as they are not high maintenance. This is good news especially if you are not that good with gardening. If you prefer having blooms then you can opt to have them in a vase instead.
Put a dash of darling with throw pillows and rugs.
This can add both color and texture to your place and not to mention tons of comfort. Who doesn’t like pillows anyway? You can have them by the living room sofa, couches and your bed of course. The same holds true for rugs.
Choose lighting carefully.
This not only creates mood but also provides much needed visibility. Some parts of your residential property investment need more of it than the others. Take your study and kitchen for example. They have to be well lit to ensure productivity but not too glary to hurt the eyes.
Hang some art work.
A residential property investment can be made to pop with a few touches of hung details. They don’t even have to be expensive artworks. Framed photographs and even graphic patterns can do the trick!