How can real-estate investments ensure a better retirement?
Retirement planning is often left to others. Few people want to think about their retirement in 20 or 30 years when they are barely balancing their budgets today - why not leave it in the hands of those more capable? With the necessary research and planning, you can make your own hands the capable ones.
When it comes to preparing for your retirement, investing in real estate is often the option people overlook. Here are a few investment options that could make your retirement a whole lot easier.
Your retirement choices shouldn't be made by flipping a coin, but flipping a house is another matter. For those with the necessary assets, skills and know-how, renovating a home and reselling it is a reliable investment to consider. The risk, though, is quite large when you're not sure of what you're doing.
With this option, your gains are also in your hands - so resist the temptation to buy that new flat-screen TV and invest your money immediately.
The most popular and reliable way of generating income through real estate is by letting out a property. With residential and commercial options that could generate a constant income for a long duration, the only real concern here would be finding new tenants and keeping the property maintained.
Patience is of the essence here - you may not make any real profit in the first few years, but once your mortgages are paid off, your profits will sky-rocket.
Letting out a holiday home is a win-win situation. If you own a property that you only use during a certain period of the year, rent it out for the rest of the time to help improve your retirement prospects.
Trust your Investment
Joining a real-estate trust is a good option for those who may not have the time to put into renovating or maintain a property. Working in much the same way as other investment trusts, the only difference being that the trade is in properties, not stocks.
With dividends that are paid out yearly, though, your investment may not have enough time to grow, as property prices remain reasonably stable throughout a single year.
Whether you decide to invest in real estate as a means to generate additional income for your retirement or feel your current investments are adequate, owning a property of one's own will ensure that you have a roof over your head in retirement, no matter what happens to your investments and pension fund.
Author: 3%.Com Properties