I have often said that it is cheaper to rent than to own your own home.

I have also often said that the best form of investment is residential property for rental.

So, how can these two apparently contradictory statements both be correct?

Let’s first talk about renting rather than owning. Why is it cheaper? Because the people that we rent from did not make good investments. Their ROI can be as low as 3,5%. Usually they are either renting us a property that was at one time their residence and had been bought for that purpose, or they were not savvy investors when they bought the property. So, we are getting the benefit of their bad investment.

Now let’s talk about investing in property for rental. I have repeatedly stressed that

• You make your profit when you buy
• Buy with your head and not your heart
• It’s all about the numbers
• You must buy from a distressed seller
• Put in a stupid offer and don’t care whether or not it is accepted

All of these tips say one thing. If you don’t buy well, I will rent your property, because that’s cheaper than owning it!