Advantages of Income Property Strategy:
- You can reap the advantages of monthly income once the residential unit is ready.
- Inflation leads to higher rental rates, resulting in an increase in monthly income over time.
- You can take advantage of tax benefits like depreciation.
- The value of rental properties appreciates as time progresses.
- After renting, the tenants assume responsibility for covering the mortgage.
Disadvantages of Income Property Strategy:
- Managing tenants can be a source of stress, or you have the option to hire a property manager to take over, albeit at an additional cost in the form of a salary.
- Long-term real estate investment strategies are not suitable for everyone.
- Success requires an investment of time and active participation.
- You won’t always have money in your hand if you need it.
- It is difficult to achieve investment diversification due to the high value of real estate.
- It requires a significant amount of funds.