The Ideal Concept
The concept of having an investment property is a great way to increase your net worth, and in the long run give you the ability to have a passive income in retirement.

In an ideal world, you buy a property, it is rented out all the time with great tenants. They look after the property beautifully; they are never behind in their rent and they never party.

You manage to keep the rents going up to cover any increases in costs that come along.

The cost of the mortgage, the rates, insurance and all the other outgoings are all covered by the rent that is coming in. There is minimal maintenance to be done - everything works perfectly.

Major maintenance like blown hot water system, air conditioning – no, these things don't go wrong.

In ten years’, time you have doubled you money. As a bonus, along the way you have managed to get a deduction from the ATO for the building depreciation and get a tax refund!