The Law Offices of William T. Peckham
Contact Us For A Reduced Initial Consultation
512-487-7604 Contact Us

Owning a rental property can be a win-win proposition

The robust real estate market here in Austin is great for those who own property, particularly if they got in a while ago and bought low. Nevertheless, the competitive market should not prevent others from buying a rental property because it is still often an excellent investment.

Cash flow from rents

Competitive markets mean higher rents, but rents at any rate bring in cash. Those who need cash flow can get it from rentals. According to financial analysts, rental property outperforms the average dividends that a similar-sized stock portfolio provides. The income is also more consistent due to rental contracts, which enables owners to leverage that money into loans for more real estate investments.

Property appreciates in value

The other part of the equation is a property’s appreciation. This is a recurring theme here in the Austin market, which has seen prices go up 7% in the last year. While it is not some flashy tech stock, this kind of appreciation will continue over the time of ownership or the length of the mortgage. Obviously, there are taxes, upkeep, improvements, and expenses, but much of this also can maintain or increase the value of the investment.

Inflation benefits

Inflation is not a bad word when it comes to real estate. Inflation drives real estate prices up, which benefits property owners. This rise in value ensures less exposure to inflation owners see in other areas.

Attorneys help protect assets and owners

The services of a knowledgeable and experienced real estate attorney here in Austin can be a tremendous asset. They can provide binding contracts that avoid unnecessary exposure to owners of rental property and new buyers. They also understand the nuances of the local market and can help determine good investments from bad ones.

No Comments

Leave a comment
Comment Information
Email us for a response

Contact The Firm

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

William T. Peckham
1104 Nueces Street, Suite 104
Austin, TX 78701
Phone: 512-487-7604
Fax: 512-478-1790
Map and Directions