Far West Property Management in Prescott provides reasons why investment properties in Prescott are a good idea. An income property is a property bought or developed to earn income. Keep in mind that while there are many advantages of investing in real estate. Far West Realty provides five reasons why an investment property in Prescott can be such a lucrative investment.
You Are the Boss of the Income Property
When you decide to invest in an income property, you become your own boss. You choose what property to invest in, what tenant you will rent to, how much you will charge in rent and how you will manage and maintain the property as a whole.
Rental Income Is Money in Your Pocket
Assuming that you are investing in an income property to occupy it with tenants, you will be able to receive rental income.
Your Tenants Will Amortize Your Mortgage for You
The most popular type of loan is a 30-year fixed rate mortgage. It has an interest rate that will remain the same for the entire 30 year term of the loan. In the beginning of the loan, significantly more money is paid to interest than to principal, but by year 15, it is close to a 50/50 split. Therefore, the longer you hold the property, the more of the loan principal your tenants are paying down and the more wealth you are creating for yourself.
Huge Tax Write-Offs for Income Property
As a rental property owner, you are entitled to huge tax deductions. You can write-off interest on your mortgage or on any credit cards used to make purchases for the property. You can write-off your insurance, maintenance repairs, travel expenses, any legal and professional fees, and even your property taxes.
Being an income property owner is a huge commitment, but, if handled properly, that huge commitment can bring equally large financial rewards. For more information on investment properties contact Far West Realty in Prescott at 928-772-9400.