This is usually a long term strategy. You buy the property, be it residential or commercial and rent it out. If you have done your research well, the property will not only increase in value over that time, but during that time, you will have earned a significant amount of money in rent. This can go towards costs of owning the property, such as mortgage, rates and insurance etc. These costs also provide you with tax deductions which your accountant can advise you on. The rent however, doesn’t always cover the entire costs of owning the property.

This will depend on the property being positive or negative geared.