You may have considered buying real estate abroad, and the prospect of a rental property investment feels enticing. Landlords currently have an edge in the rental market because renter households are rising faster than owner families. Given real estate’s current investment potential, it’s a great time to consider the advantages of rental property investment. Many people support themselves financially by making a rental property investment, particularly by owning properties in sought-after locations like our luxury apartments in Montenegro.
As experts in real estate investment and property development, our team at Royal Town Kotor has compiled this list of how rental property investment can benefit you and your financial goals.
#1. Passive Income
The fact that rental property investment generates a passive income source may be its most prominent advantage. It’s an attractive option for those looking for a side project or even more financial stability in retirement. In addition, the renter’s income is usually taxed favorably compared to income from regular employment, so that’s another plus. Although rental property investment is a passive investment, it still requires some work. But that effort doesn’t have to be made by you. For example, if you employ a property manager, you can enjoy a consistent income stream without spending time on tenant complaints, upkeep, and repairs.
Maintaining a rental property if you purchase it in a suitable market could be simple. Take our luxury serviced apartments as an example. At Royal Town Kotor, our professional management team deals with marketing your property, finding high-profile tenants, and maintaining the apartments and communal amenities. The outcome? Rental revenue that is reliable and steady and a property that shines.
#2. Value Appreciation
By renting out your home, you can earn income in the short term while allowing time for the property to increase in value and give yourself the option to sell it later. Look at the possibility for appreciation in various locations to see what you can anticipate. Over time, real estate typically increases in value, so you can sell your rental property at a considerable profit if you keep it for a long time. And that money could do a lot for you, like enable you to achieve other objectives or contribute to your retirement.
It’s possible that you already have traditional investments like stocks and shares. However, owning rental property enables you to diversify your portfolio, which can give an additional layer of risk protection. It can also allow you to benefit from favorable market sways.
Furthermore, having a rental property implies you have yet another asset that gives you more financial security when other investments suffer. Additionally, you can use that rental property as your financial fallback strategy by selling it if things get tough financially.
Currently, property values are rising while stocks are declining. Investors who have money in both are suffering less than those who only have stocks. The benefit of owning a rental property is that it is an additional investment that might perform well even if the value of your other assets has declined.
#4. Capital Growth
Capital growth is a primary driver in rental property investment. Although it is common for property values to drop, these drops are only transitory since real estate follows an upwards curve over time. By renting your property, you reduce the dangers these price swings bring by generating passive income while you wait for your real estate investment to mature. After all, the monthly rent will cover all necessary expenses, including maintenance. In addition, for many years to come, you will see tremendous capital growth.
Montenegro’s house prices increased by 20.5% YoY in December 2022.
#5. Protection from Rising Interest Rates
Compared to other industries, the real estate sector has an easier time battling inflation. As a result, your rental property’s value will climb as prices do. Purchase real estate at a low-interest rate to guard against declining asset values. Your rental property protects your money since you can always raise the rent to keep up with inflation.
#6. You have your own Holiday Home.
You don’t have to have renters occupy a short-term rental constantly. Instead, when you’re prepared for a break from the grind, you might use that space for your gain. For example, if you own a vacation property close to a lake, beach, or other attractive locale, it can act as your own retreat when needed.
Royal Town Kotor offers you the perfect option for an unbeatable holiday retreat. Owning a home in one of the most exciting and culturally diverse places on earth is a benefit of investing in Montenegrin real estate. You can also receive a Montenegro residence permit through rental property investment, allowing access to more advantages abroad. The Mediterranean environment and warm Montenegrin hospitality attract tourists worldwide, and Montenegro’s tourism industry is expanding. This means you can be sure to have high demand from potential tenants when you buy property in Montenegro.
Montenegro Real Estate Market
The Montenegro real estate market is attractive for those wanting to move or make a rewarding rental property investment. It perfectly balances current attractive prices and the promise of future value appreciation. Prices in Montenegro real estate are rising primarily because of luring international investors and residents into the Montenegrin real estate market. In addition, the tourism industry in Montenegro is still expanding, which will undoubtedly support a healthy real estate market, particularly around the stunning coastal areas.
The moment to invest in Montenegro is unquestionably now. Infrastructure has been improved, and several new resorts are drawing an ever-growing number of visitors. As a result, such high-quality investments as Royal Town Kotor, Royal Blue Montenegro, and Porto Montenegro are in high demand from these consumers.
A Winning Rental Property Investment with Royal Town Kotor
As you can see, rental property investment benefits your personal and financial well-being. As an investor, you can use your Royal Town Kotor property to fulfill your travel demands, and we will create significant rental income for the remainder of the time. We at Royal Town Kotor have created a special investment plan that provides over 50% more returns than buying real estate for a residence. Additionally, since we will market your property utilizing our extensive connections, you won’t need to worry about finding dependable tenants. Contact us to schedule a thorough consultation with one of our experts to receive in-depth professional assistance.
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