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There's a huge benefit to owning an income property.
And the main thing is that you have a hard asset in which you're building your wealth
for the future.
And there's a few different ways that income properties can help you build wealth.
And I always look at the four major sources of income from an investment property.
Number 1 is that there's market appreciation over time.
Number 2 is that you can have forced appreciation by doing the right renovations, basically
transforming the property from something that might be in disrepair,
to something that's more in keeping with the neighbourhood will add in extra value for
you instantly and give you equity.
And then there's the long-term benefits. The tenant is the making payments on the house.
Therefore the principal is being paid down and you're recapturing that as the owner.
So you have this principal recapture every single month the principal of the mortgage
is being paid down,
and the last and one of my favourite things about owning an income property is the positive
cash flow.
At the end of the day, you have rent coming in covering your expenses, and then there's
a little bit extra, which is: that's your salary.