The word investment property (IP) is crucial and learning about it before investing is really cool, then ensure you are aware of all associated costs.
The benefits of IP and the cost of buying is significant, and having more knowledge on these costs can assist you in calculating what you can afford.
Definition of Investment Property
Investment property can be define as a land or building of house, or a real estate property buy with the intention of earning a return on the investment, it maybe through rental income, the furniture resale of the property. Also, these properties maybe held by an individual investor, a group of investors, or a corporation.
Understanding (IP) is good, as it is also used for other assets that an investor purchases for the sake of future appreciation such as art, land, securities, and other collectibles.
Is to generate some form of income dividends, rents, interest, or even royalties which fall outside the scope of the property owner’s regular line of business.
Types of Investment Property (IP)
There are three types of IP. These includes:
The Costs of Buying an IP
There are 6 things to consider under the costs when buying your investment property. It includes:
- Stamp duties
- Pest and building reports
- Home loan fees
- Buyer’s agent
- Lender’s mortgage insurance
5 Benefits of Investment Property
This benefits of an investment property is very crucial as it can lead you towards financial freedom and success. One of the best decision to make is investing in property.
Nobody knows tomorrow and what it may brings, and you can see that life is not easy, while cost of living increase time to time.
A lot of people face so many challenges, and investing right now is the key to success. Do you know that the majority of the richest people across the globe either made their riches in investing, or they hold some portion of their wealth in property. Let’s quickly go through the benefits and see the right side.
- Future financial security
- A house to live in if you need it
- Ability to leverage one investment property to purchase more
- Getting passive income to fund your lifestyle
- Someone else purchase an asset for you
There are many benefits but with the one we listed here shows that IP is amazing, with the right advice and enough dedication you can build a portfolio that brings you the success you desire.