The benefits of buying an apartment and renting it out are discussed here in this article. Moving to another country or settling down in some other state, things like these are absolutely common nowadays. There have been inflation in the prices of food, transport and everything in between. Amidst all this, not every one has enough resources to buy a house for themselves. Thus the option of renting a place is becoming very popular. Even if you decide to move away you don’t have to be bothered about selling that place or moving all your things to your new home.
It certainly is a benefit for those who are looking to rent a place.
Many college students belong to far off places and renting out apartments are very convenient for them. Also, the world today is booming with opportunities and many a times a person has to leave their hometown in lieu of these opportunities. While people begin their career, it isn’t financially possible for them to afford a new house. For them as well, renting an apartment turns out to be a better option.
But what about landlords? What do they have to gain from this? If you have a vacant place then you can consider putting it out for rent.
Top 10 Benefits of buying an apartment and renting it out
Top ten benefits of renting out an apartment are listed out below, have a look:
1. Money
People like to believe that money can’t buy happiness and tranquility but aren’t people the most anxious and stressed when they don’t have enough money to get by each day and square meal? No one refuses some extra cash. People do part time jobs along with their main jobs or their education to earn a bit more. But it can be tough to get that kind of time to fit in your schedule. Many people don’t talk about passive income. This is one way to make more by using two virtues, patience and patience. When you use your present assets to make future gains from them. You can think of the stock market or mutual funds for that example. You invest money and you get back money more than you invested. Similarly you can use other assets you own such as property. Renting out an extra plot or apartment that you own can bring you monetary benefits.
2. Maintenance
Haven’t we got atleast one piece of clothing or footwear that got ruined because it wasn’t used and was stored away for a long time! Faux leather can start crumbling after a certain period of time. They’re hard to say goodbyes, to your most favourite black boots or jackets. Similarly whenever something is left for a long period of time without caring for it then it gets ruined. The greatest test of them all is the test of time, even large cities merely exist as ruins now. Just like your body stays fit if you keep using it, exercising each body part. Similarly you must make use of the land or apartments you may own. Leaving a plot empty for too long can cause huge growth of weeds and the like. The wood or furniture in your apartment may also get ruined in the same manner. If you rent it out then other than minor repairs you’ll be able to keep your property maintained.
3. Market value
With time everything changes in the world. The ozone went through the process of getting a huge hole in it and now its under the recovery stage. The world keeps moving forward and so do the prices for everything. With inflated prices for almost every commodity, from gold to food, property is no exception. Although there are various fluctuations in the market value of properties at any given point of time. It is not necessary to take a hasty decision to sell the property for money, instead renting can give you the advantage of selling it when the price of the place increases.
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4. Tax deductions
Other than only earning money from renting out your house you can also get tax benefits. In case you take a housing loan or any loan for that matter, you are required to pay any interest along with that. In regards to a house loan, if the owner of family members are residing in that same property then they can get upto a 2 lakh rupee deduction from the loan interest amount. In case that property has been rented out, the entire home loan interest is allowed as a deduction. However there are a few more conditions added to that mix.
5. Location blooms
Everyone is evolving, each day is a different experience where we get to learn new things. These changes within us also are determined by the exterior changes we face. Each place, each city is developing as even villages are now becoming known as global villages. Whenever a new element is added to a neighborhood, whether a bus stop or a market place, it adds value to the property. Even when a new road or highway is constructed near a place, it increases the value of the place as accessibility to that area becomes better. Similarly if a place gets developed and people start coming and settling there then the rent of that place will also increase which will benefit you as a landlord.
6. Emotional quotient
We all have one piece of clothing that has been there in our cupboard for long time but never gets worn, because it has a memory attached to it. Similarly we might have something similar on our bookshelf or dresser. This happens because we are creatures who don’t only rely on instincts to go through life. Instead we also depend upon our IQ, which is, intelligence and EQ, that is, emotional quotient. It might be better not to sell your property and put it out for rent instead. This way you still have ownership over that property, land or apartment. For many people houses hold a large number of memories. Each nook and corner will remind you of some time in your childhood. Some part might remind you of a lover or even fun moments you’ve spent with them. It isn’t necessary to part with these even if you’re in need of money.
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7. Time
Isn’t always better to your take time while taking decisions instead of merely taking one for the heck of it and regretting it later? We’ve all had our fair shares of disappointments and regrets when we have made hasty decisions. It might have been the time when you spent a huge amount of money on a dress but that dress still hasn’t come out of your cupboard after you bought it. It could even be the monthly subscription you paid for but didn’t use for more than 2 days. It’s better to spend some more time thinking about such things because once you sell the property there’s no turning back. Also you can raise the rent after a year or so which is definitely a bonus.
8. Options
You must have had atleast one moment when you stood in front of your wardrobe and couldn’t decide which t-shirt would match better with the trousers you had on. It’s better to have two options or more to choose from at any given point in time. The restaurant that has the best menu in terms of food items and price categories attracts most people. Similarly if you rent your land or apartment you have more options to choose from. The first option of selling that property at any given time is always open. The second one is to give it for rent. Incase you have a house there, you demolish it and use that land for some other purpose in the future. When people start a new business they have to invest a huge sum initially because the cost of land is high. If one already has land then the project cost will decrease.
9. Profit over loss
Whenever you opt for selling your house or land it can end up being a loss you for you instead. When we wish to sell immediately then the people will not buy it at the rates which you’re offering but at a less amount instead. Also it takes up a lot of time to find someone willing to buy your property than find a tenant since the former has the requirement of a huge sum of money. Also when you sell your property you have to do much more maintenance work instead of making small changes while putting it out for rent.
Read Also: Benefits of buying a used car
10. Emergency asset
We are whole beings by ourselves but when we are at our lowest we need someone to be there for us. When you know that you have a shoulder to lean on, it becomes easier for you to face your troubles and sorrows with more determination. Similarly we need to have a back up in life, financially as well. Owning a property or land can be very beneficial for you. In case you’re looking to take a loan as well you can use this land or house as mortgage.
