Why Invest in Cashflow Positive Property?
1. Steady Income Stream: Cashflow positive properties generate rental income that covers or exceeds the property expenses, ensuring a consistent income stream for investors.
2. Reduced Financial Risk: Positive cash flow properties are less reliant on property value appreciation, reducing the impact of market fluctuations on your investment.
3. Lower Stress Levels: Positive cash flow eliminates the need for out-of-pocket expenses to cover property costs, reducing financial stress for investors.
4. Increased Liquidity: Cashflow positive properties provide readily available income, which can be reinvested or used for other financial goals without relying on property sales.
5. Portfolio Diversification: Adding cashflow positive properties to your investment portfolio can diversify risk, especially if other investments are negatively geared.
6. Tax Benefits: Rental income can be partially offset by deductions such as depreciation, mortgage interest, and property-related expenses, potentially lowering your tax liability.
7. Resilience in Economic Downturns: Cashflow positive properties can be more resilient during economic downturns, as the rental income helps cover ongoing expenses.