The Value of Rental Ownership
Rental ownership has had a long history of satisfying the primary requirements for financial independence: safety of capital, inflation hedge and tax favored income. If the financial statements of the wealthy were available for review, you would see that long term income producing real estate assets directly or indirectly contribute substantially to their net worth.
Certainly there are exceptions to wealth accrual, but real estate has worked its way up to the top 20%; and rental properties purchased one at a time consistently are the safest real asset to own. Some look at owning rental properties as just another financial asset with the same characteristics and similar results as any other stock market investment.
Well-located, rental producing real estate has usually fared better as a long term hedge against inflation when compared to financial investments. Though, assets may hold value, no reliable income is produced. Equity in your own personal residence is its own goal, providing a sense of well being, a source of emergency funds and a reduction of household expense as you approach retirement; but no income. However, a well maintained and managed rental, held free of debt produces tax favored income on a consistent basis.
Are you ready to take the steps to become wealthy through real estate?
