Which is a common advantage of owning an investment property?

Prepare for the Washington 60-Hour Fundamentals Exam with study guides and quizzes. Enhance your knowledge on valuation, financing, and lending with hints and explanations. Ace your Washington real estate exam!

Owning an investment property often provides the benefit of potential for property appreciation. This means that the property may increase in value over time due to various factors such as market demand, improvements in the surrounding area, or general economic conditions. Investors commonly seek properties with the expectation that their value will rise, allowing them to sell at a profit in the future.

This advantage is significant as it can lead to substantial financial gain, in contrast to the other options. Increased property taxes, lower rental income, and higher maintenance costs are burdens associated with property ownership that can negatively impact the profitability of an investment. Thus, the potential for appreciation stands out as a primary motivation for many investors looking to build wealth through real estate.

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