Income property is property that generates MORE income than you have to pay in expenses. This is exciting because at the end of each month you have money left over that you can either use to reinvest or you can spend it on your lifestyle...awesome!
How Can Income Property Make You Financially Free?
Income property can make you financially free because it generates you passive income. Passive income is income that you don't have to work for. Because you don't have to work hard to get money out of your property (you just rent it out and receive money every week) this means that any income you receive above your expenses is passive income.
If you can build up enough passive income from your properties that you can completely cover all of your living expenses then you are considered to be financially free. This is an amazing achievement because it means that you can live indefinitely (until you die) without ever having to work again. Your investments will pay for your food, your rent/mortgage, your entertainment, your holidays etc etc.
Income property generates more rental income than you pay in expenses. This is passive income because you don't have to work for it, you simply rent out your property. Over time you may have to do a little work but most of the work will be done by your rental manager (for a small fee).
Over time the income from your property is very likely to increase. This is because your rental income goes up over time while your major expenses (your mortgage) stays the same or even gets smaller. Eventually you can completely pay off your mortgage using NONE of your own money and you can earn even more money. This means that every year as rents go up you become wealthier and receive more passive income?
Income property has the added bonus of generating you extra money through capital gains. As the value of your property goes up your equity goes up. You can realize this equity by selling your property or by borrowing against it. This can be very beneficial as it can help you to purchase more income property that will generate you even more passive income.
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For more info about how to invest in real estate and real estate development , visit http://www.collectrealassets.com
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