Good Times for
Landlords talks about the financial possibilities of renting out property. It
can be a good source of additional income, as long as you keep the numbers in
line. Restoring a beat up property as opposed to renting out a “junky” property
can be a good investment as long as the amount spent on the restoration is
still covered by the incoming rent, as at least some of the mortgage is being
paid for through the rent as well.
I believe that this
idea is a very practical way to live; in some instances you can make a decent
profit off of the renter. Depending on how your renting status is, it can be
fairly steady income because even when the housing market may be down, it means
that instead of buying people are more likely to rent because it is not a
commitment and they won’t have an interest rate to worry about.
There is a counter
point to being a landlord though. The fact that people rent typically because
they cannot get a mortgage might show to their inability to pay on time.
Although this is not a completely true statistic, it is something to be wary
about when thinking about becoming a landlord. Being a landlord is a risk, but
it can pay off as long as you are careful about your investment. http://realestate.msn.com/article.aspx?cp-documentid=20619924
I agree with him on this. The hosing market has really made an impact on the economy in the last few years and I think its very important that people realize that there are ways to sell houses for more, or buy better houses for less.
ReplyDeleteThis is interesting in today's economic crisis. A lot of the banks cracked down on loads or just hiked up the interest on these loans. As a result I think a lot more people are renting as apposed to buying. And if it is done correctly there is definitely money to be made. Maybe a future career choice?
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