A US property investment is usually a piece of real property that is not occupied by the owner of the property. The owner rents the property to others who are called tenants, the owner becomes the landlord. Investors who have considerable US property investment in their portfolios often contract the management of their properties to property management companies. Many investors start their property portfolio with residential property and then move on to larger commercial properties as their skills in property management improve.
The basic US property investment is a single family residence which is rented out as an income generating investment. Many investors have complete apartment buildings or a duplex or townhouse development. Many of these types of residential properties can hold hundreds of families.
Although the income from residential property rental is nice, the headaches of being a landlord are not. It is not just managing the properties when they are occupied, there are the maintenance and repair issues and getting the unit rented again after a sitting tenant does not renew his lease. For those investors who have a considerable number of units these tasks are farmed out to professional management companies. Many investors have properties scattered across the country, this would not be possible without management companies. Usually the owner of the units spends his time servicing the mortgages from the rental income, maintaining the property taxes and insurances.
The income from rental properties is usually higher than the income from paper assets such as stocks and bonds, especially when interest rates are low and the value of the dollar is falling. The income from a US property investment depends on the circumstances. The property may be mortgaged; the size and overall condition of the housing must be considered as does the area and the ability of the owner. Any expenses that occur are written off against tax the same as expenses for any business. If the owner has to have repairs made or maintenance done the costs are deducted from taxable income.
Investments in property take a considerable amount of money and that money is tied up for an extended period of time, it is not very liquid. When the investment is made the circumstances may have been ideal but over time circumstances change and what may have been a desirable location can become a depressed area over time.
If you are ready to add an element of US property investment to your portfolio then you are invited to contact Real Time Investments Ltd. The RTI team strives to make purchasing the properties stress free.
