Show me the money!
But it’s not just about the money…
Let’s face it, whether you’re a seasoned investor or thinking about buying your first property, the main reason that we buy an income property is so that we can receive the financial benefits of owning real estate. Yes, we want to make money.
Not that there is anything wrong with this! Owning investment real estate is, in my opinion, the best way to grow your wealth and add stability to your personal finances. From my experience however, there are many less obvious benefits of owning a rental property that most first or would-be investors don’t even consider. Here are just a few:
Providing high-quality housing
High-quality tenants deserve, and are attracted to, high-quality housing. One of the most enjoyable aspects of being a Landlord is seeing a tenant absolutely thrilled with their home and actually taking care of it like it’s their own. This not only improves their life, but yours as well.
Helping tenants build their lives
Everyone has a story as to why they are renting from you. Sometimes they are a new couple just starting out, or a new family just coming together, or a family breaking apart. During the time that they are renting, you will see them improve and build and become more financially stable. Don’t underestimate the fact that you are contributing to their development by providing a great home and a positive experience at this stage of their life.
This one could be a blog post in itself! No matter how you look at it, buying and owning a rental property is going to push you beyond your current boundaries (and this is a good thing). Whether it be seeking financing, renovating, or screening tenants, you will find yourself doing things that you never thought possible before. Yes, it can be difficult, frustrating, tiring, but all of this contributes to your own personal development. You’ll be better for it and you will gradually be able to take on bigger and bigger challenges.
Teaching your kids about personal finance
Kids are curious and they want to know how things work. A rental property is a great way to teach kids about personal finance in a non-traditional way. One of the most important lessons that we teach our kids is how to make your money work for you, by buying an income property and having people pay you to live there. They are always amazed when they see us depositing rent cheques each month. We have frequent conversations about our income properties and this really teaches them that there are many ways to make money apart from a traditional job. I also believe that these conversations help them to develop their analytical and critical thinking skills.
Being a positive role model for your kids
Kids learn from your actions. How you handle the ups and downs of property ownership really teaches them a lot about business and life in general. You also demonstrate your belief that you really can achieve anything that you put your mind to.