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The question is sometimes asked as to why you should buy extra properties. The reasoning behind purchasing investment houses is the retirement income potential they provide. By purchasing income properties now can get you a good retirement fund over the next ten or so years time.

Let’s calculate at this as an example. Let us assume the average person owns one place that they reside in, which is mortgaged. On top of the mortgage payments there will be other utility bills to pay as well. Alot of people have to work in a job just to shell out on their mortgage and other bills too. They will also have to pay the taxes which also come with the job which is another big chunk out of their income. Adding income tax payments and other bills together can be almost as much as two thirds of your income gone. Only leaving a third left to survive.

Most people are just glad to pay off their own mortgage and own their own home. However that still means there are the other bills left to pay. This means you still cannot give up your job because the bills need to be paid.

So the answer is to have another passive income source. This source will continuously bring you in an income, so you will have money coming in all the time. That’s why  owning other properties is crucial. Even if you have a mortgage on your income properties you can still make money from them. This means you will always receive a passive income.

As the years go on, your properties will increase in value and your rents should increase too. With an extra three or four extra properties all pad off at the end of the repayment term will pay you a good source of revenue. The passive income made should give you a swell lifestyle with your bills being met.

The other benefit of using property for your passive income rather than other types of traditional businesses is that your income property business can be totally hands off. You can use agents to run it for you and other people to do the maintenance. This means you can you can be completely somewhere else while the money keeps rolling in. I can be holidaying in my Barbados accommodation as the money flows in. Maybe you fancy that sort of situation too, that you be lying on the beach on a Barbados All Inclusive holiday, while your properties are providing your income.