Why Residential Rental Property Investment Is No Longer A Good Idea

Rental Property investment has been high on the list of passive investments since automation will eventually result in robots taking your job.

There are many benefits to buying rental property as an investment. When you consider the three types of income – earned, capital gains and passive; we find that passive income ranks higher than earned income.

Rental property is not co-related to the stock market. One can achieve a fair level of diversification with stock like returns.

Rental property investments are great because you can borrow money and leverage it to buy property. The down payment is a fraction of the purchase price providing you leverage.

While we may not agree with everything he says, there are nine decades of wisdom buried in Warren Buffett’s quotes.

When you have a 30 year fixed rate mortgage and make the monthly payments; the bank doesn’t care about the value of the property.

When you buy a rental property as an investment; YOU are directly responsible for the investment returns.

Rental property investment returns depends on your skills to find a great deal, negotiate a deal.

Typically you would buy the rental investment property with a loan. The tenants with their monthly rent payments are paying down the loan for you.

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