Advantages of Rental Property

Many investors have concerns about investing in company stocks or in financial instruments but they also realize they need to invest their money somewhere it will grow for the future.  As we mentioned, the stock market will fluctuate over time, while real estate has historically grown in net worth.  Even with the current soft market in housing, investing in real estate is a great way to grow your wealth for the future.  With more and more families finding it hard to qualify for a home mortgage, many of them are turning to renting.  The Myrtle Beach area is home to older couples who are moving to the south for warmer weather and amenities such as golf and the ocean.  Many of these couples don’t want the headaches that home ownership can bring and are looking to rent their southern homes.

Another advantage of real estate investing is the income potential.  In most cases rental income will cover the cost of the mortgage and other expenses and provide you with additional monthly income.  You will need to do your homework and calculate all the monthly expenses, including a reserve for any future repairs or improvements, to determine if you will have an income stream from the property.  This will be easier to determine if you have a family renting the home all year around or a seasonal vacation property.

As a general rule, real estate property will appreciate over time providing you with an every growing asset.  You will want to purchase property in areas that are stable and have a history of growing in value.  Keep in mind that we had a very high grow rate and then a severe dip in the housing market.  You will want to look at the value of properties in the area over a long period of time. Even if you are looking to invest in a relatively new property, you can work with a Myrtle Beach real estate agent to check older properties in the same area to determine if there is a general increase in home value.

Another advantage of real estate investing is leverage.  This means you have the advantage of purchasing the rental property with borrowed funds at the current low interest rates.  You can then start taking advantage of all the benefits of owning Myrtle Beach rental property while at the same time only investing a small percentage of the value of the Myrtle Beach property out of your pocket.  In most instances the rental property will secure the mortgage and you will not need to pledge any other assets.

The tax advantages of owning rental property are another great reason to buy.  You will be able to deduct the interest on the mortgage, any utilities that you are obligated to pay, home owners association dues and repairs. These will be deducted from the money you are charging for rent on the property and will often return a loss on your tax return which can offset other income.  Of course, you will want to check with a tax accountant or lawyer before factoring in this advantage into your decision to purchase Myrtle Beach rental property.

One intangible asset to owning rental property is that you are your own boss.  Whether you are looking to supplement your current income or leave your current job and do real estate investing full time you can benefit from the independence of owning and operating your own Myrtle Beach rental property.

Working with a real estate agent to find the best Myrtle Beach rental property is a wise decision.  A real estate agent that knows the area and can keep you informed of any new listings is the best asset you can have.

Give us a call today to discuss your real estate investing goals.  We know the area and are versed in short sales, foreclosures and bank owned properties that are real bargains.

Jerry Pinkas Real Estate Team
854 Frontage Road West, Myrtle Beach, SC 29577
(843) 839-9870 ?