# Are Rental Properties a Good Investment? For a long time, rental houses have served as a passive source of income. Real estate investment has generated and continues to produce some of the world's wealthiest people. However, before you join the ranks of those who are already making a fortune in the real estate market, you must first learn the fundamentals of owning a rental property. ### Benefits of Investing in Rental Property There are a variety of reasons to buy a rental property. While property investing has advantages and disadvantages, the rewards frequently outweigh the disadvantages. #### Good Cash Flow Investing in rental properties generates a steady stream of income because money is deposited into your account on a monthly basis. You'll be putting cash into your bank account without having to go to work every day. ![](https://i.imgur.com/sVTCD2H.jpg) Rental properties produce recurring income, which means you won't have to put in a lot of effort to keep them up to date. It might be a great strategy to assure financial security before retiring or simply have some extra cash on hand. This is especially true if you intend to invest in an apartment building as a rental property. The larger the cash flow, the more tenants you have. #### Benefits from Taxes Depending on your state, you may be eligible for tax incentives if you own a rental property. When it comes to owning a rental property, property investors pay little to no taxes. You could not even be taxed on the money you earn from the rental. Mortgage interest, insurance, physical wear and tear, and property maintenance are all included as deductions. These tax incentives can come in helpful when the cost of living rises every day. #### Appreciation of Values Real estate properties rise in value over time. This implies that when the value of the home rises, you will earn more and be able to pay off your mortgage more rapidly. You also have the option of selling your home for a fair price when the time comes. While it still has its ups and downs, real estate investment has consistently demonstrated an upward trend for many years. So, are you ready to buy your first rental property? Let [rental property companies](http://kellyville.harcourts.com.au/) help you out!