Creating Income on a Property Investment

When thinking about how to create income from property investment, there are two ways to go about this. The first and most common way is through rent. Rental income is money that goes into your pocket, but for this to happen, the income from the rent must be greater than the costs of the property after money is invested which gives us what is known as ‘cash flow positive’ properties. This means you’re in the green, literally. You are making income! You have a property that is making money rather than not.

The second and more time consuming way of creating income on a property investment is to trust that the property will (hopefully) increase in value. If you want to go with a property investment, choose a residential property rather than a company. The reason why is because a company can go bankrupt unlike a residential property. A residential property is considered more of a secured investment.