Real Estate Retirement: Is It For You?
As you begin approaching retirement, you may be wondering about the wide variety of investment options available today and how you can make the most of your well-earned savings or pension. From cryptocurrencies to building your stock portfolio, it can be difficult to know where to start. However, real estate investing continues to be an attractive opportunity for many individuals leaving the workforce.
Once you have learned the basics, real estate investing can be an incredibly powerful revenue-generating tool. A working knowledge of real estate is key to making the best decisions for your financial future and ultimately giving yourself the freedom to enjoy this time.
What is Real Estate Retirement?
Real estate retirement investing is a strategy that focuses on acquiring rental property in order to ultimately use the income generated from that property to help fund your lifestyle. This is a revenue stream that can allow you to make passive income, which is money that you earn without going to work every day and actively participating.
If you are able to purchase a property outright, then any money that you generate from it can be used as income. Similarly, you can use the income that you generate to pay off the mortgage of that rental property. Once the property is paid off, you will have a passive revenue stream that can all go towards your expenses. Finding the right property and the right tenant are often the most important aspects of getting started with real estate investing.
Passive income is one of the key benefits of this strategy and why it can be such a great source of cash-flow for many people. The objective with this investment approach is to acquire and hold rental property that is able to generate consistent (and passive) income, allowing you to retire and still maintain and even build your wealth.
In addition to offering passive income, owning property comes with huge tax advantages. In fact, it is especially crucial to know the tax implications of purchasing a property and how that could affect your overall financial goals. There is a huge amount of information and online real estate investing tools available to help you further research what options are best for you. Regardless of your situation, however, be sure to meet with a certified tax accountant.
There is a wide variety of rental property types available today, from commercial space to apartment buildings and retail properties. It is important to take this into consideration when determining which real estate option is best for you and your overall retirement needs. It may also be helpful to meet with a trusted financial advisor or investment professional specialized in real estate, in order to get an expert opinion on how to best use real estate as a revenue stream during retirement. For you to have financial freedom and better enjoy this time for which you have worked so hard, you will need a comprehensive financial strategy, and real estate may just hold the answer.
About the Author
Katie McDaniel is a writer, editor, and former HR professional. She writes about the latest developments in HR, business communication, law, finance, and investing.