Why Use Property As Your Retirement Fund.
Sometimes a question is asked as to why people buy another property. The reasoning behind buying investment houses is the retirement income potential they provide. Even with a just a three or four extra properties you can still over the next ten or so years gets yourself a enjoyable little retirement fund.
Let’s look at this as an example. Let’s say the average person owns their own home that they reside in and they are paying a mortgage on it. On top of the mortgage payments there will be other utility bills to pay as well. People also have to work to keep up the mortgage payments and pay their bills. They will also have to pay the taxes which also come with the job which is another big chunk out of their source of revenue. With all the bills you have to pay as well as your income tax can be as much as two thirds of your income. Leaving a person with only a third of their wage left for normal living cost and lifestyle.
A lot of people just settle for paying off their mortgage at the end of the term. However the other utility bills will still need to be met. This means you still cannot leave your job because the bills need to be paid.
The solution is to have a passive income coming in. This is a great source of passive revenue. This is why having income producing properties is important. The income property can still be mortgaged and you will still make money from increased rents. This means your passive income will be constant.
Over the years your rents will go up with inflation and the properties could gain in value. With an extra three or four extra properties all pad off at the end of the repayment term will give you a good income. The inome made will give you a smashing lifetlye with all your bills being met.
The main reason to use properties for passive income against other businesses is you don’t need to be there to run it. You can use agents to run it for you and other people to do the maintenance. This means the money can roll in while you are not there. I am still able to stay in my Barbados Apartment while the income still comes in. Maybe you picture that sort of situation too, that you be lying on the beach on a Barbados All Inclusive holiday, whilst your properties are providing your income.
