The benefits of investing in a property and renting it for profit
Did you even wonder why investing in a real estate property is a profitable strategy for many? The answer is hidden in a number of benefits which this type of capital investments could offer. To become an investor in a property is one of the best and most secure ways to generate a profit.
Creating a business plan shows that it is much more profitable to purchase a property which, once rented, will bring you stable revenue.
In this case, your profit will be secured and certainly higher compared to the funds that you will receive if you decide to invest your money in a fixed term deposit in a bank.
An interesting fact: Around 90% of the world’s millionaires have invested in real estate properties.
In the following lines we will introduce you to the main benefits of buying a property with the purpose of renting it.
A constant cash flow
The main motivation that makes people invest in a property and rent it is without a doubt the expected profit. As a real estate investor you can make money from a constant cash flow or the so-called rent, as well as from the appreciation of the property in the long run.
The successful property bough with an investment purpose will guarantee you a good return of investment. This is defined by the attractiveness of the property area’s location.
The high demand for apartments and studios in Sarafovo South quickly turned the area in a preferred place for living and vacation for many people and the interest is still growing.
Buying a studio in the Atlantis closed-type complexes with the idea of renting it is an incredibly good investment which opens a variety of opportunities without hiding any risks for the investor.
A long-term financial stability
The benefits of investing in a property provide to the investors a long-term financial stability through securing a sustainable cash flow. Owning and letting the property could bring to the investor a sense of security as its value grows over time. This is a golden rule which applies with full force, especially when it comes to a fast developing and prosperous area such as Sarafovo South.
Mortgage payments are covered
Another benefit of investing in a property is that mortgage payments (if you have such) are covered from the profit of the rent which you receive each month. In this way it looks like your tenant is the one who pays the mortgage of your property. With a well prepared plan, the amount of the loan installments could be less than the rent, which will bring you additional dividends.
The rise of the property’s price over time
The real estate property investment is not a short-term investment plan. The benefits of this type of entrepreneurial deal include the appreciation of the capital assets over time.
At a later stage, the property will without a doubt cost more in comparison to its initial price. The real estate experts advise to keep the investment property for at least 10 years so you can maximize your profits.
Some real estate markets have a quicker and a higher expected appreciation rate than others.
The best ones are those where mortgages’ interest rate decrease while the demand for investment in the area increases, which reduces the availability of properties in the area. Those places usually have a high expected rate of appreciation, meaning that it is important to take advantage of the provided opportunities at the right time.
Without any negatives from the inflation processes
One of the biggest benefits of investing in a real estate property is the hedging against inflation. At high inflation rates, the income from the rents and the value of the properties rise significantly.
In fact, the investors cannot bear the negativities of the inflation. It is even possible that the value of the investment properties increases. Furthermore, if you plan to sell your property at the time of inflation, you can do it at a significantly higher price, especially at markets with limited supply of similar properties.
The cash flow model introduces a zero-risk concept and plan for a future return of investment on properties at Sarafovo South. It has a real potential for continuous earnings, increasing the financial value of the property in the future and making real profits.
With all these benefits, it is no wonder why investing in a property is one of the best and most secure ways to generate long-term revenue.
If you want to invest in a property close to the beach in the fast developing and prosperous area Sarafovo South, contact us and we will give you all the information you may need.
Telephone: 0876 112 222; 0700 11 222