Why rental income properties make a sound investment?
There are a number of reasons of why real estate and rental income properties specifically make a good investment, but here are few basic reasons: 1) You are leveraging and using OPM (Other People’s Money) The beauty about rental income properties is that you are making money using OPM: the bank’s money (i.e. via a mortgage loan), and via your renter’s rent money (i.e. the person paying the mortgages and property bills on your behalf). Further, the rent on a good rental income property should cover all or most of the expenses related to your property including mortgage payments, property taxes, and insurance. As long as you can keep your place rented, and as long the property is in a good area you are likely to profit handsomely over the long term while leveraging OPM. 2) Real estate is generally a sound/stable investment over the long term and a good way to diversify. Sure, we do encounter declines in some centres as cyclical recessions hit, but over the long term real estate has been
