Real estate investments can hold limitless possibilities, and they can provide true financial freedom in the form of instant income diversification. This can start from simply renting one house. When you decide to rent a property that you own, you can both increase the monthly income you receive and your peace of mind from knowing that your income is coming from more than one source. Here are some of the essential reasons you should consider renting your home for instant income diversification.
Consider This! Healthcare Costs Are Rising
For many Americans, healthcare costs are rising. The extra income from your rental property can go towards paying these extra costs. Additionally, having the additional money coming in can help keep you afloat in case you have health issues that cause you to pay a high deductible or encounter later health challenges that prevent you from working as usual.
Consider This! Paying Cash for Purchases Is Best
The money that you receive from renting your home can be used to provide you with enough money to live within your means. Financial analysts often advise people to start building a secure financial future by living within their means and paying cash on the barrel for all purchases. That's easier said than done, of course, but it becomes much easier with a diverse income.
Consider This! An Unsteady Economy Needs Steady Thinking
With an economy that is improving but imperfect and somewhat unpredictable, you need to make the most secure financial choices possible. When you have the additional income stream from a rental property, you are better able to keep your footing even if other financial issues come up.
Wait! Consider This Potential Deal Breaker: Carrying Costs
While renting your home will provide income diversification and a strong investment over time, it comes with several responsibilities, including carrying costs. Even if you are without a tenant for a month or two, you will still need cover tax on the property as well as maintenance and insurance expenses. You should have some money tucked away to cover these expenses for a worst case scenario.
Finally, in a world where nobody knows what the future has in store for themselves, income diversification is a smart way to ensure your financial health. When you have the diverse income that real estate investments can bring, you don't have to worry as much about losing your job or other avenues of income as long as you have enough money coming in from your real estate investments.
Share21 September 2016
After I decided to buy a new home, I realized that I probably needed to prioritize the things on my wish list. Since I am not wealthy, I realized that I probably couldn't get everything that I wanted out of a single home--at least, not this time around. Fortunately, I worked with an incredible real estate agent who helped me to figure out which type of property would pay off in the end. Finding a home took a lot of time, but I am really pleased that I found the right one. This blog is all about learning to prioritize your home hunting wish list so that you can have the home and financial situation of your dreams.
