I can’t really wrap my head around it, you can have a tenant in there that maybe covers the mortgage, but it’s not really a good investment if you’re not getting a return?
Even if you use 500k to buy a property cash, wouldn’t that money be better off in the market?
In: Economics
My personal example.
Parents bought an investment property in London for £190,000 in 2001 – now it’s worth £750,000.
That house was rented out to tenants over 15 years. The tenants rent money paid off the mortgage.
Once the house was paid off, we had £750,000 of equity we could then raise, or sell the house for a large profit – OR just live in a mortgage free home paid for by someone else’s money.
I chose the latter – because I’m in my 30’s and I don’t want the stress of mortgage.
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