26/02/2020 by African developers group 0 Comments
Is rental properties a good investment?
As a matter of fact, It’s indeed hard to rely on a 9-5 job for your
entire livelihood with layoffs and pay cuts always right around the
corner. More over, funding for your retirement should be considered as
well. Investments can go a long way in supplementing your retirement
savings or pension, hence more income streams equals more security.
Consequently, if you have cash lying around and want to put your money to work, one investment option is to consider which is an income property. As a result of the rapidly growing population and more, the residential sector has recorded the highest demand with the nationwide housing deficit standing at 200,000 units annually and an accumulated deficit of over 2 million units. However, the largest demand has been for affordable housing to cater for the 61% of urban dwellers who live in slums and shortage in student accommodation accounting for 40% of the deficit. Tenants provide you with an added income stream. The largest impact on the worth of an investment property is how it operates as a business. An apartment that is fully occupied with paying tenants, and does not need major repairs, increases in value when more money is collected through higher rents.
Clearly as Daniel Lesniak -the founder of Orange Line Living, co-founder of real estate coaching business HyperFast Agent, author of ‘The HyperLocal, Hyperfast Real Estate’- said: “Real estate is always a great investment because you have more options than with other types of investments. If you invest in stocks, bonds, or a private offering, your success is completely dependent on factors outside of your control. At most, your options are to hold or sell. With real estate, you have unlimited options. If you buy a rental that appreciates in value significantly, you can sell it. Real estate can be refinanced, rehabbed, and rezoned. You can develop it, lease it, subdivide it, or add parcels to it. These are just a few of your options. This flexibility is one of the reasons it has created more millionaires than any other asset class.”
To sum up, a regular job will not cover the funding for your retirement nor the monthly savings needed, and the more the income stream is, the more security is gained. One of the best and secure ways to approach this is an income property. Obviously, Because of the rapid growing population and the ingoing business of owning or renting real estates, It is considered the most secure and guaranteed way of investment.