Wealth building and rental/income properties ...

We have here those houses being rented by a tenant which it for subletting. Say a house with 3 rooms would be rented out to single people like 4 of them in one room. That is called a boarding house here that is being patronized mostly by people from the provinces who got a job in the city. They stay in the boarding house during weekdays and go home to the province during weekends. What's good in a boarding house is the high rent because the tenants have a job and they can afford to pay. On the downside, a boarding house requires a full time caretaker.

 

I don't have rental properties but I have quite a number of acquaintances who have rental properties which appears to be in the eye of the current craze in modern investments. I overheard one rental house owner complaining that the ROI of rental buildings and apartments is quite low compared to the capital invested. In reality rental houses lock capital but they are an excellent way to generate passive income especially in high end or fast growing areas. Though properties depreciate and require innovations, population growth means that rents will always be on an upward trend.