Having multiple properties is a strong way to build wealth that will last your family for a long time, even after you are gone. However, having multiple properties is not for the faint-hearted. You need adequate knowledge to manage and maintain your properties so that you don’t lose any of them.
Fortunately, having multiple properties, apart from reducing the fear of losing one property and not owning any property, can all be insured. With such insurance, you can be sure that if anything happens to any of your property, you will be able to get them back. This is especially when you get the right type of insurance policy from the right insurance company. You can know the right insurance policy type to opt for and which company to get it from by reading landlord insurance compare reviews on BritainReviews. You will be able to learn from the experiences of other landlords. Here are some of the reasons you should have multiple properties:
High ROI and leverage
Having and managing multiple properties is a great way to leverage financial instruments to help you build wealth. For instance, your returns keep increasing with time and you get these high returns on investments from different sources. As such, your multiple properties can help create wealth that will last a generation.
Beyond having insurance policies, having multiple properties also serve as a sort of insurance. For instance, someone who owns 10 houses will not be crushed by the impact if he loses one to fire or a bad business deal, compared to someone who has just only one property. You can always maximize other properties you have should anything happens to one.
Steady source of passive income
Another important reason to have multiple properties is that they serve as a steady source of passive income for life. You won’t be healthy and fit to work throughout your lifetime. As such, using the money you get from your working years to buy multiple properties is a way to build great passive income for yourself. Even though you have to be actively involved in managing your multiple properties, the work you do is lesser when compared to you working for active income.
Protection against inflation
Having multiple properties also helps to guard against inflation. Inflation is common to most economies of the world, and you need to have investments in your financial arsenal that can protect your living standard against that. As inflation rises, what you charge for rents increases as well. You can always use the extra to cushion the impact of the additional costs inflation brings.
More exit opportunities
One of the biggest reasons to have multiple properties is the multiple exit opportunities they provide you. For instance, if something happens to the house you live in and it becomes unliveable, you can easily change house and live in another of your houses. For someone who does not have multiple properties, this would be near impossible for them to do so. Also, if you are caught in a financial problem, such as a big debt you have to pay, you can easily maximize your multiple properties to get money. You can sell, lease or rent out your properties.
Good retirement plan
Most financial experts advise that you start planning for retirement early in your working years if you want to enjoy your older years. There is no better way to do this by investing early in stable sectors like real estate, cryptocurrencies, agriculture, etc. You can live off the income you get from your multiple properties for life without having to work again.