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Residential real estate are buildings that people
dwell in. This includes detached houses, apartments, townhouse,
farms, attached and semi-attached houses. Residential real estate is the most common form
of real estate. Whether it is purchased as a home or an investment
there is estimated to be three times more residential real estate than
commercial in monetary value.
Investing
It is a very common and simple form of investment
and can provide good returns. The key to good real estate investment
is leverage. Using other people's money to gain a better return on
your investment.
Returns are generally low for residential real estate investment,
often your tenants might not even provide enough rent to cover the
mortgage interest. This is because residential investors hope for
higher capital gains in the future.
If your tenants leave it is usually easy to find new tenants and the
house will likely not be left vacant for long.
Tax Advantages - real estate investment
provides many tax advantages, it is not uncommon to pay less than
10% tax on your real estate income, even less in some cases. This
largely due to depreciation of the property, and writing off the
interest on mortgages.
Landlord Rights - for residential property
you do not have as much control on your tenants. They have rights,
and are given fair eviction times although they may owe back rent.
The landlord is to pay for rates and insurance. There are also many
code of standards for the tenants living environments.
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