Money Matters- Rental Properties
COLUMBIA, S.C. (WIS) - Are rental properties a good investment?
Josh Bradley with Capital City Financial says they can be. Historically, real estate, in general, has performed low stocks long-term, but better than traditional bonds.
Real estate usually comes with a little less volatility which usually means fewer ups and downs than the traditional market, according to Bradley. Many of their returns are through income production, which means you get paid while you wait for that property to grow.
There are also tax advantages that real estate investments present for investors.
Even though those are all good things, Bradley says real estate investments also pose risks.
A real estate investment usually creates another job for you and you have to deal with finding tenants, repairs, etc.
The reason for those good tax advantages is because your house or building is degrading constantly and you have to keep putting money back into it just to keep it at the same value.
Also, the extra income is nice, however, when a tenant moves out or messes up the place, you could lose income or have to put more money into the investment.
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