So I just started reading Rich Dad Poor Dad by Robert Kiyosaki.
The author often repeats and heavily emphasises how owning a personal house is not an asset but a liability. The reasons he gives include payment for mortgage, utilities, maintenance, taxes, insurance, and more. I agree with these reasons and think they are valid.
What I do not understand is how owning a rental property would be an asset. I get that I would be renting it out to to somebody and that would pay off the mortgage, but I would still bear to cost of maintenance, taxes etc. Apart from this, I would be living in a rental apartment/house myself and hence be paying for that as well. Also, in the event that I am unable to find a tenant, I would have to pay rent as well as mortgage for the rental property I own.
How does this prove to be a better investment or an asset ? Am I missing something or misunderstanding how these work?
Submitted September 29, 2021 at 08:12AM by Big_Bazooka_555 https://ift.tt/3zUmvLL
