Have you seen several Greece properties for sale? Do you want to purchase one as your first property? Well, it may be better if you turn it into an income property. It is a property developed or purchase to generate profit. But, just like any business, though there are a lot of benefits of investing a property, there are also several risks associated.
Why invest in an income property? Here are the answers:
You’re the Boss
Of course, since you own the property, you are your own boss. You will be the one to decide how much you would charge for the rent, what kind of tenant you would allow, what property you will invest, and how you will maintain and manage the property.
If you are working for another person, you would follow their rules, like following the dress code. If you are the boss, then you could wake up anytime you want and wear any clothes (as long as it is decent).
For those who do not know, leverage means you invest only a small part of your money. The rest would be borrowed from the lender. The investment is supposed to be “highly leverage” if you buy a house using considerably more debt than equity.
Generate Easy Money
You would be able to generate rental income if you let your investment property rented by tenants.
For instance, you only have 1 tenant and you are charging him/her around $1,000 every month. Your mortgage fee is $700 per month. So, you would have $400 per month, right? Well, wrong!
You still need to consider some of the things that would be associated with your property. This includes maintenance costs and vacancy costs. A 10% allowance for the maintenance and vacancy costs should be enough.