Rental properties typically provide a consistent stream of rental income, offering you a regular source of cash flow.
Halifax real estate has a solid history of property appreciation. While market fluctuations can occur, Halifax has a solid history of stability compared to other major cities in Canada. Plus as your property appreciates, your mortgage is being paid down by the tenants, building increased equity and return.
Hedge Against Inflation
A significant advantage of investing in real estate is its ability to act as a hedge against inflation. As the cost of living rises, rental income and property values tend to increase in tandem, ensuring that your investment retains its value and purchasing power.
Portfolio diversification with rental properties mitigates overall risk. Real estate tends to have a low correlation with other asset classes, such as stocks and bonds, meaning it can act as a buffer against market volatility and provide a stable income stream even during economic downturns.
Rental properties offer tax benefits. Expenses such as mortgage interest, property taxes, utilities, repairs and gas to drive to and from the property can be deducted from your taxable rental income. Additionally, depreciation allows you to deduct a portion of the property's value over time.