Why Should I Buy A Rental Property?
Buying rental properties is an amazing way to increase your wealth exponentially over time. Here’s why:
- You own an appreciating asset. All markets have their ups and downs, including the real estate market, but historically they rise over the long term. The property will appreciate on its own with regular maintenance or you can improve the property to increase the value more quickly.
- It’s a tangible asset, meaning that you can go look at it and touch it any time you want. Unlike the stock market, you know exactly what you have purchased and you can see your investment right in front of you.
- Someone else is paying it off for you. Once you have tenants in place, they are paying the mortgage on the rental property for you and eventually you will own the asset free and clear using someone else’s money. Of course there can be shortfalls along the way and you might end up covering these with your own money but overall, your tenants will pay the bulk of the mortgage.
- You can use the property as a source of income for yourself. Once the property is paid off you can hang on to it for the income it produces. You could use the income to finance more revenue properties, use it to finance other investments, use it to supplement your income so you can work less, or use it to contribute to your retirement.
- You learn valuable new skills. You learn the best way to find and buy new rental properties, how to manage your properties, how to do minor repairs, and so many more things that are too numerous to mention. This experience will teach you so much and the more you learn about investments, finances, and dealing with people, the better off you will be in almost every aspect of your life.