The Advantages and Disadvantages of Investment Properties
Many people have the eye on investment properties as it definitely looks like a secure thing to put in the money and utilised for more income
. Before you join in to be one of them, consider the advantages and disadvantages of such action.
The advantages of investment properties are many. It offers as a long term plan which could reap some rewards for retirement time. Since housing is something which hardly decreases in price, this is one good choice for any financial plans that has a long run in goal. You could rent it out to make a side income from it. Other than that, it will serve as a positive asset for you. This comes useful when you need to acquire loan for something as it can be used as a security for getting another house or car.
Although you could gain many advantages from it, wrong choice of investment properties or lack of search and studies may bring you some sort of disadvantages. There is the problem with liquidity. In trying to sell off the property, it may require long period of time as you should only accept a price that worth the value. In addition to it, you face problems when your property is being rented to bad tenants. They could be irresponsible and not taking good care of the home. Far worse is when they refuse to pay the rent. Even if you would have come out with the notice and inform them to leave, there may be more problems in dealing with the disputes and refusal to leave. Vacancies of the property may also occur when you fail to find tenants and have to highly fill up the gaps of payments. As the home ages, there are more things to repair and maintain. It will cost you to come out with more for maintenance.
The Advantages and Disadvantages of Investment Properties