Unfortunately, not everyone is able to save as much as they would have liked for retirement. It is a sad reality, but one that presents itself to many of us. While early investment in real estate is best (just ask Jason Hartman!) there’s no such thing as too late. Many retirees are turning to rentals and reverse mortgages to support an otherwise dismal retirement fund.
Real estate often presents a better option than stocks because it is a physical asset that will not go away until you (the buyer) chose to get rid of the property, whereas stocks are provided representation by people involved with companies that may end business at any time.
There are several options for retirees interested in real estate investment. They may choose to buy an apartment building or home to rent out, rent a room within their own home, or entertain the option of a reverse mortgage. Retirees will need to first consider the amount of cash at their disposal and the amount of cash flow they hope to generate.
Our favorite solution to the problem of funding your retirement is real estate investment. While this type of investment requires the most money initially, it will produce the highest results. When you rent out a room in your home, you give up privacy and are able to collect less rent since you’re offering a shared space. You may not get along with your roommate or their lifestyle choices.
If you purchase a nice property in a good neighborhood, you’ll be able to collect a fair share of rent. Be sure to choose an area that will remain continually popular amongst renters and to make necessary improvements to the home to encourage renters.
This option isn’t for everyone, though—because real estate is not liquid, it isn’t a great option for large amounts of quick cash. Relying on one property as a sole source of income can be dangerous.
It will also be important for retirees to consider their own limitations when investing in a property. It may be necessary to hire a property manager to take care of some of the more physical parts of your income property maintenance.
Investing in real estate is a great way to ensure that you provide yourself with a comfortable retirement. It’s less risky, promises more money, and can even be a great hobby as you ease into a life of leisure!
(photo credit: WashULibraries via photopin cc)