You want your assets to be relatively risk-free at retirement and provide you the income you need with minimal taxes and expenses. When you're planning your retirement, consider your lifestyle and personal situation to figure out whether real estate is a good investment for you.
The first step is to decide where you want to live and what your retirement life would look like.
For example, if you want to stay close to family or friends living in another city/state, you may want to relocate or sell your existing home to buy another home closer to them.
Take into consideration the details of your day-to-day life and decide which option fits you the best.
Some of the real estate options for you to consider are:
REITs are companies that own commercial spaces. By buying REITs, you're actually investing in real estate without the physical real estate.
REITs are a common investment vehicle in retirement, and they're known to pay high dividends. If you don't need regular income, you can reinvest the dividends to further grow your investment.
Renting out a room is a more accessible concept than real estate investing. If you've got a spare room in your house, consider renting it out through reliable sites like Airbnb.
Before jumping at this idea, you'll need to make sure it's allowed in your lease. Consult your lease agreement or check with your landlord.
This is a very common real estate investment strategy. However, you need to ensure you have tenants consistently, and the rental income is enough for you to cover any mortgage you might have on the property, plus the taxes, insurance and maintenance.
If you dream of running a beachside rum shack in your retirement, owning commercial property can help you get your business idea off the ground, increase your monthly income and increase your long-term wealth.
Financial experts suggest that owning commercial property is much more beneficial than owning residential real estate. However, it can also have more risk and may require a bigger investment.
Owning a vacation property for investment purposes means that you can put it up for rent for the short-term. If your home is in a desirable location, you can easily earn more income than what you would earn from a year-round of tenants elsewhere.
Flipping a property is when you buy it not to use, but with the intention of selling it at a profit. Flipping is a profitable real estate option, but you need to have the right assets, know-how and home improvement skills to make it a success.
There are some retirement communities that offer services like transportation, meal delivery and healthcare. Buying into a retirement community can help secure a spot for the future. However, this option can be expensive, depending on the level of service offered.
There are several options to consider to help you plan for the retirement you want. But most will come with an initial investment. if done right, you can increase your income so you can enjoy a life of leisure in your golden years.
The post Retirement Planning for Renters: 8 Real Estate Options to Consider appeared first on Apartment Living Tips - Apartment Tips from ApartmentGuide.com.
The first step is to decide where you want to live and what your retirement life would look like.
- Are you planning to invest in real estate with your 401(k)?
- What are your financial goals?
- What kind of housing are you looking for?
- What are your lifestyle considerations?
For example, if you want to stay close to family or friends living in another city/state, you may want to relocate or sell your existing home to buy another home closer to them.
Take into consideration the details of your day-to-day life and decide which option fits you the best.
Some of the real estate options for you to consider are:
1. Buy REITs (real estate investment trusts)
REITs are companies that own commercial spaces. By buying REITs, you're actually investing in real estate without the physical real estate.
REITs are a common investment vehicle in retirement, and they're known to pay high dividends. If you don't need regular income, you can reinvest the dividends to further grow your investment.
2. Rent out a room
Renting out a room is a more accessible concept than real estate investing. If you've got a spare room in your house, consider renting it out through reliable sites like Airbnb.
Before jumping at this idea, you'll need to make sure it's allowed in your lease. Consult your lease agreement or check with your landlord.
3. Purchase residential property and rent it out for long-term
This is a very common real estate investment strategy. However, you need to ensure you have tenants consistently, and the rental income is enough for you to cover any mortgage you might have on the property, plus the taxes, insurance and maintenance.
4. Purchase commercial property to run your business
If you dream of running a beachside rum shack in your retirement, owning commercial property can help you get your business idea off the ground, increase your monthly income and increase your long-term wealth.
5. Purchase commercial property and rent it out
Financial experts suggest that owning commercial property is much more beneficial than owning residential real estate. However, it can also have more risk and may require a bigger investment.
6. Purchase a vacation home and rent it out part-time
Owning a vacation property for investment purposes means that you can put it up for rent for the short-term. If your home is in a desirable location, you can easily earn more income than what you would earn from a year-round of tenants elsewhere.
7. Real estate flipping
Flipping a property is when you buy it not to use, but with the intention of selling it at a profit. Flipping is a profitable real estate option, but you need to have the right assets, know-how and home improvement skills to make it a success.
8. Buy into a retirement community
There are some retirement communities that offer services like transportation, meal delivery and healthcare. Buying into a retirement community can help secure a spot for the future. However, this option can be expensive, depending on the level of service offered.
Retirement planning is worth the investment
There are several options to consider to help you plan for the retirement you want. But most will come with an initial investment. if done right, you can increase your income so you can enjoy a life of leisure in your golden years.
The post Retirement Planning for Renters: 8 Real Estate Options to Consider appeared first on Apartment Living Tips - Apartment Tips from ApartmentGuide.com.