The current low interest rate environment makes mortgage borrowers happy. However, it is more difficult for investors who have capital at their disposal but are unable to generate a return with a conservative investment strategy. Investing in income properties is therefore an alternative to the capital market. Income properties are a long-term investment and provide regular income as well as a certain protection against inflation. However, the decision to buy an income property should be carefully considered. Below you will find answers to the most important questions:
- What is an income property?
- What investment opportunities do I have?
- What risks do I take?
- How do I find the right property?
- What financing options do I have?
- What are the financial consequences?
What is an income property?
An income property is defined as a property acquired for investment purposes. The investment allows for a stable, secure capital investment and ideally yields a regular profit. The premises of an income property are often rented out. The following properties can be counted as income properties:
- Apartment buildings
- Single-family houses or condominium
- Office buildings
- Commercial properties
- Mixed-use properties (residential, commercial and office)