Owning just one rental property can have a myriad of benefits for a landlord both short and long-term.
We all wish for passive income and multiple income streams. By hiring a great property manager to manage your investment your income will become even more passive and hassle-free for years to come.
The tenant’s rent can begin paying off your mortgage liability immediately. While your tenant is paying off that liability your property value is probably appreciating, especially in South Okanagan, British Columbia communites such as Penticton, Oliver and Osoyoos where monthly rents and property values continue to rise.
Monthly cash flow generated can also pay for home improvements, property taxes and property management fees. Most of these expenses can also be used as tax deductions. If your expenses are great you can often decrease your personal income to pay less tax in the short term. Please speak with a certified accountant.
In the longer term you may wish to purchase another income property or principal residence. The equity in your rental property may be used as leverage to buy more assets, increasing your portfolio and net worth.
In the very long term we all hope to pass down assets to our younger generations. A rental property can be passed down to create generational wealth and passive income for your family in years to come.