Hi Friend,
There was a time, early in my real estate investing career in which I thought that commercial real estate was a better investment than residential real estate. I was young and naïve at the time and have come to realize that residential real estate is the far superior investment. Residential real estate is better because:
The possibility of owning a rental property it is not out of the reach of the average income earner.
All things being equal, you do not have to be making a 6 figure income if you want to acquire a rental property in the residential world. If you are an average income earner, with the help of a quality investment focused mortgage broker, you can purchase a rental property with relative ease. Once you purchase this rental property, you can rent it out and have your tenant pay down your mortgage over the next 25 to 35 years, depending upon the length of the amortization of your mortgage. What this means to the average person is that once you have reached the age of retirement, you will have an asset that is free and clear of a mortgage. This strategy of investing in residential real estate is realistic and it is attainable. If you decide to purchase multiple rental properties, it is the best way to amass over a million dollars in equity over the course of your lifetime.
What do you think about this blog post? Do you agree that residential real estate is a better investment, or do you prefer commercial real estate? Leave your comments below.
Happy Investing!
-Neil Uttamsingh
ps: If you are serious about buying your first rental property, sign up for the First Rental Property Newsletter. In the Newsletter you will get to read tips and tricks from experienced real estate investors on how to buy your first rental property! You can sign up for the Newsletter in the top right hand corner of the blog. Oh, and by the way…. it is free of charge! Sign up today! 🙂
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