Rental Property vs Investment Property – What Is The Difference? (Ep184)
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Rental Property vs Investment Property – What Is The Difference? (Ep184)


What’s the difference between a rental property
and an investment property and which is going to be a better investment? Hi I am Ryan from Onproperty.com.au your daily
dose of property education and inspiration. In this episode we are going to look at what
is a rental property and what is an investment property? Let’s start by looking at a rental
property. Pretty simply a rental property is a property that you purchase in order to
rent out and to get a rental income from that property. An investment property is generally
a property that you purchase with the goal of making money. Now that can pay as a rental
property and you can rent it out but it can also be just holding up property in mind for
the market to go up. It can be doing developments to that property or renovations or subdivisions.
There are so many different facets or things that you can do to an investment property
that sets it apart from just a regular rental property. So technically speaking almost every
rental property is actually an investment property. It�s the same that all yachts
are boats but not all boats are yachts. All rental properties are investment properties
but not all investment properties are rental properties. I think really what people are
trying to say when they’re asking me about this distinction is what’s better cash flow
or capital growth? And try and invest for a rental property with cash flow or an investment
property that’s going to generate capital growth. The both have their benefits it is
like cash flow can make money from day one. Can generate passive income and help you achieve
financial freedom. It can also make money in all markets so whether the value of the
property is going up, down, sideways, criss-cross it doesn’t actually really matter as long
as you got that rental income coming in you are getting a return on investment. But then capital growth properties can also
be great because you usually leverage to purchase the property you are getting leverage growth.
And if the market goes up well then you can make a significant amount of money in a pretty
short period of time. And with capital growth property there’s also the opportunity to build
your portfolio quicker if the market works in your favour because the growth in your
property is generating these large sums of money. So both positive cash flow and capital
growth can be a great way to invest. I hope that that has helped with the distinction
of rental property versus investment property. A very short video today. If you want to check
it out positive cash flow properties that I find and then I list and you want me to
teach you exactly how to find them yourself well Onproperty Plus is probably going to
be the perfect solution for. It is my own membership website. It is currently $20 a
month or about $200 per year. You can check that out by going to www.onproperty.com.au/plus
and beware membership are limited. So untill tomorrow remember that your long-term success
is achieved one day at a time.

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