Income Stream
If the property is easily convertible to rental units, the owner of the property can earn a steady income stream in the form of rent. Depending on the geographical location the property is located in, the earnings can be quite significant. For example, urban city centers or towns with colleges and universities tend to offer the highest income streams because the demand for rental units is always high.
Security
Owning property can offer the investor a sense of security because the value does not tend to fluctuate as much as other assets such as stocks and bonds. However, this does not mean that the investor will always break even or earn a profit on their investment. Although housing prices do not tend to fluctuate in the short term, they may increase or decrease in value in the longer term. Therefore, it is important for the investor to thoroughly research the area before making a purchase.
Self Occupation
Another reason why many investors are attracted to investing in real estate is because the property can be utilized by the investor. They can either live on the property while they fix it up, or they can be a live-in landlord and earn an income stream at the same time by renting out the other rooms.
Tax Shelter
Since tax laws on income properties vary depending on your jurisdiction, you should always be sure to thoroughly research it beforehand. However, it is very common for taxes on any gains to be deferred until you sell the property. For example, if a house appreciates in value from $250,000 to $300,000, the investor will not be required to pay the taxes on the extra $50,000 until the property is sold.