Owning a residential property in Thane for rental purposes can be an attractive option when you think of constant returns in the form of rent as well as an asset in your name. While investment in real estate is always a good idea, it is important to bear in mind that owning rental properties isn’t just a smooth sailing ship but requires careful management and upkeep as well. If you are considering whether this is a good option for you, here, we bring you the pros and cons of owning rental properties.
Pros of Owning Rental Property
1. Rental Income
Rental income can go a long way in keeping your bank balance ticking. These days with most people looking for a side hustle or another income source, rental income offers a huge relief and in some cases can amply cover maintenance expenses of rental property.
2. Tax Benefits
Owning rental property offers various tax advantages. Expenses related to property management, maintenance, repairs, interest, and depreciation can be deducted allowing for better tax savings.
3. Equity Value
Real estate investment is one of the best ways to build equity. With development occurring at warp speed, the value of luxury homes in Thane is only going to rise in the future thus building equity value for the property owner and consequently rental income as well.
4. Less Volatile
Stocks and other investment instruments are highly volatile. On the other hand, property in Thane offers a more steady investment that also protects against inflation. While real estate may be temporarily affected due to economic downturn, it is faster to regain momentum and find its balance.
Cons of Owning Rental Property
1. Initial Investment and Costs
Purchasing rental property requires a significant initial investment, including a down payment, monthly home loan interest, and potential renovation expenses. Additionally, certain costs are recurring such as maintenance, property management fees, and so on.
2. Vacant Periods
Rental income only comes in regularly if there are regular tenants. However, often there may be gaps between tenants when the property is vacant. Here, the payment of interest or maintenance fees can draw on your income. This is why investing in luxury homes in Thane which is a highly developing area can allow you to find tenants faster and increase rental demand.
3. Management Responsibilities
Being a property owner means that all responsibility falls on your shoulders. This involves managing the property, maintenance as well as dealing with tenants and potential disputes, which can be time-consuming and stressful.
4. Illiquid Asset
Real estate is an illiquid asset, which means it cannot be instantly converted to money in case of an emergency. Selling a property can take time, and during market downturns, it may result in a loss.
Conclusion
Investing in rental property is a great choice as it builds equity while generating rental income. However, it is important to note that as a property owner, there are also several responsibilities one has to bear. To ensure you are able to always find tenants and invest in a quality property, only opt for trusted real estate developers in Thane such as Ace Realty which offer you quality apartments at prominent locations with numerous amenities thereby ensuring demand and good rental income.
