The Bright Side of Investing In Rental Apartments

How to Invest In Rental Apartments
There are numerous ways to invest and multiply your money. But, a rental apartment is one of the most reliable. In spite of the fact that property values can increase and fall with the time, rental incomes remain a fixed source of income. And also, if a property is well-located, perfectly maintained and rented to reliably paying tenants, it can have a nice resale value, as well.

Whether you are planning on purchasing a single apartment to give on rent or a building full of them, you can get huge benefits. In this article, I will outline a few benefits of investing in rental apartments so as to show you the bright side of investing in the same.

A Regular Source of Income

The reason numerous investors prefer purchasing apartment buildings is because they provide a fixed source of income. When you select properly, and in a good location, rental apartments will always give cash flow consistently. Most organizations come and go particularly in office, retail and warehouse properties. However, individuals are continually searching for a place to live.

Solid Investment Returns

Even low-yielding and conservative apartments offer solid returns with respect to other resource classes. Numerous investors are attracted to the steady income, which, depending upon how you purchase your flat, can be anywhere from a couple of percent to the mid-teens every year, calculated with respect to your down payment.

But, you’re additionally paying your loan down, and this adds to the return you will get either when you sell the property or when you pay the loan amount and get a prompt increment in monthly income. While the main reduction may not appear as a noteworthy contributor of your return, remember that your home loan expands its effect, since the development is with respect to your down payment.

Operational Simplicity

As compared to other types of investments in real-estate, rental apartments are not that difficult to manage. Your responsibilities are precisely defined and your relationships with tenants are clear. This is a critical distinction from leased investments, for example, retail centers and offices where discovering occupants can be tedious and costly and the nature of each deal can be very different.

Rental Apartments Can Offer Tax Benefits

Like other types of investments in real estate, rental apartments are great when it comes to tax cuts. There are numerous tax benefits that you can claim. If you are losing cash on your property you can counterbalance this against your income and hence secure yourself a tax saving. You can likewise claim things like devaluation on fittings or fixtures which increases your tax savings.

If you utilize the returns from selling your rental apartment to purchase more investments real estate, you can likewise postpone your capital gains and recover taxes.

Main Reduction

Another advantage of apartment building purchase is a principal reduction. Your equity consequently expands every month in the apartment building. This is because your occupants are paying the mortgage on your apartment with their rents. When you get the month to month rents, you pay out costs, and afterward, pay the mortgage. With such payments, you are getting equity and also expand your wealth.

High Demand for Apartments

As trends and shifts show, a lot of individuals are hunting down the perfect apartment lifestyle. Malls, colleges, hubs of cultural activities and more are uniting individuals. They aren’t prepared to buy their own particular home and need their very own conservative space. It wouldn’t hurt you to be liberal to the possibility of addressing that request.

With a continuous flow of numerous energetic occupants to choose from, you could serve any demographic you wished to. Moreover, rental apartments are more affordable than regular houses. So your startup expenses would be considerably smaller.

Other Benefits

real estate tax benefits
The best part about giving an apartment on rent is that you can pay your home EMIs utilizing the rent gathered and yet have a flat to call your own by the day’s end! Furthermore, if you need to re-sell your apartment, there is always a bigger pool of purchasers. Beside this, condos are additionally simpler on the pocket, so little down payment is required. Bank loans are also less demanding when purchasing apartments.

Final Words

Apartments are physical resources and not only some piece of paper that claims itself to be an advantage and are considered as an astounding inflation hedge. A truth of owning land is that the investment property always gets value over the time through market appreciation. So feel free to invest with an open mind in rental apartments.

About Author:

Liza Kosh is senior editor at Mainstreet Equity Corp. Mainstreet Equity Corp. is a publicly traded (TSX: MEQ) residential real estate company in Canada. She enjoys creating, uncovering and disseminating new and interesting perspectives on real estate and home improvement.

5 Things to Keep in Mind before investing in Bangkok

Bangkok real estate investment
Investing in the overseas real estate market is an exciting prospect for million of investors all over the globe. Apart from seeing it as the perfect way to enjoy vacations in your home at a foreign destination, the long term monetary benefits associated with these is the main driving reason behind it. In this post, we are going to discuss about a city named Bangkok which attracts millions of tourists from all over the World.

Along with being the center of attraction among tourists, it also gives an amazing opportunity to the investors to invest in its real estate market. So, if you are one of those who is looking to invest in Bangkok in the coming years, then this post will act as a guide for you. Over here, I am going to mention 5 things or points that you need to keep in mind before investing in the city.

1. Look To Invest With Established Developers

Just as all over the World, branded things will definitely come at a higher price and Bangkok is no different. In the city you can broadly find two types of construction developers, once are the novice ones and the others are the established ones. It is always advisable to invest in those properties that are constructed by the established one. These will spend more time in planning the design, functionality and the layout before going about with the construction project. The condominiums constructed by these developers are of a good quality and make use of the best construction materials.

2. Easy To Commute Transportation Services

Even if you are not going to settle down in the city buying a property that has a close proximity to the transportation services is always favorable. Those buildings that are relatively nearer to the city’s Mass Transit System will definitely be popular among the people who are looking to own a condo on rent. Therefore it becomes necessary to select a building while keeping this parameter in mind. In order to keep the property appreciable in the long run, it is important that you take care of this aspect.

3. Lay Emphasis On The Location Of The Property

In order to yield a good rental value and capital growth from your property, it becomes vital that you do a proper research before finalizing the deal on something. As people of every age group live in Bangkok it is important that you do a research on who your target audience is. If you want to give your property on rent to a family then choosing a quite area and a park nearby should be your choice. Similarly, a young professional would be looking for a location that has good transportation facilities and is in the middle of the city.

4. Analyze Your Finances

This is the foremost requirement that should be done from your end before jumping into the investment process. Apart from the cost of the property, there are a number of miscellaneous costs that are associated with buying a property in Bangkok. Therefore, you need to calculate as to what type of property will comfortably fit in your budget. If you believe that the cost of the property will be recovered from the rent that you get from the tenant then it is a wrong approach. You can never be sure that the property you own will always yield a rent for you. There will be times when you may find no tenant for it. Thus, you must only invest when you are able to bear any of the unforeseen situations.

5. Always Be Updated

A sign of a good investor is that he always keeps himself updated with all the latest that is happening in the market that he is going to invest in. If you are going to invest in Bangkok for the first time then you must give yourself sufficient time before making the final move. Each and every market trend should be closely followed by you so that at the time when you invest, you will be able to reap the maximum profits out of it. One right decision can prove to be beneficial for the rest of your life whereas a wrong one can incur huge losses for you.

In The End

Investing in a foreign land will always seem risky, however, if you follow the right strategy and process the chances of you making a wrong decision will be minimal. Bangkok as an investment city has a lot to offer, thanks to the constant rise in the city’s real estate market. A number of expatriates are already reaping huge benefits by investing in the city. This trend is not going to slow down anytime soon as more and more investment opportunities are going to come forward in the coming years.

Author Bio: David Lane was born and raised in Thailand. He is working as a Realtor for Thailand-property. Which provides long term or short term Thai property to clients . David is praised most often by clients for his enthusiasm, patient approach and unwavering loyalty. Apart from this , David loves to do fly fishing, sporting clays and play golf.

How to Get Your First Apartment as a College Student

First Apartment for College Student
After the first year, most college students prefer to get their own apartment instead of living on campus. This will give you even greater independence and help you learn the responsibilities of adult life early on. Besides, it will certainly be a lot of fun. Renting an apartment, however, isn’t simple. Check out the steps you must go through and get practical tips on how to do everything right.

Preparing a Budget

You have to calculate how much you can afford to spend on renting an apartment while at college. When doing the math, include not only the rental rate, but also the additional expenses that tenants have to cover. These usually include the utility bills, although sometimes they may be included in the rent, and the subscription fees for the paid services that you will use on the property such as internet and satellite TV, to name some of the most common ones. You also have to take into account the number of roommates that you will be sharing the property with.

Defining Your Requirements

Location is the first thing to consider when renting a property. You’d want it to be close to your college and/or to have convenient public transport connections. When it comes to choosing a neighborhood, the ones that are popular with college students are usually the best choice as life will be easier in a community like this.

While most students can’t afford comforts such as having a private bathroom, you have to think about the things which you cannot go without and write them down. For example, many college students prefer to live in an apartment building where there is not only maintenance, but also a higher level of security.

Research and Evaluation

It’s best to start your search in the spring when graduates vacate the apartments they’ve lived in. The higher inventory at that time will give you not only a larger choice, but also more bargaining power. The more listings you check online, the better. Just make sure that you are using only legitimate websites.

It’s a good idea to keep a list of your requirements with you when you visit rental apartment. You should also have all questions which are important to you written down, so that you don’t forget to ask them. If you notice something strange or you don’t understand something, don’t hesitate to ask about it directly.

Signing the Lease Agreement

In general, the longer the lease is, the lower the rental rate will be and vice versa. Still, it is reasonable for it to cover only the school year, unless you are planning to spend your summer there too. When reading the agreement, go over the terms and conditions very carefully to get a clear understanding of your rights and liabilities. Go over the list of amenities and items and ensure that they are present, just to be on the safe side.

Last, but not least, before moving in, you should consider getting renter insurance to cover your possessions. This is an effective way to protect yourself against a major financial setback, even if you live in a highly secure building.