High Return Real Estate – Can It Solve Your Retirement Woes?

Posted on Oct 3 2017 - 8:42pm by Editorial Staff

Unfortunately, there are many people who are finding that they’re financially unprepared for retirement and end up being unable to afford the luxuries they are used to. It can be a harsh reality check for many, and the advice to young millennials is to prepare for retirement as early as possible. Pensions and other schemes, like 401K’s, aren’t always enough to rely on. However, investing in real estate is becoming more appealing. So, what are the advantages of investing in real estate as a way of saving for retirement?

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Immediate ROI

ROI means return on investment. When you’re saving for retirement, the quicker you see cash flow from your investments, the better. Real estate is one of the best ways to get fast cash flow. This is especially true if you invest in properties and rent them out. Rental prices are often higher than mortgage prices, meaning landlords can quickly make a profit. If you’re working full-time and don’t want the hassle of finding a property and upgrading it ready for viewings, that doesn’t mean you can’t do high return real estate investment. In fact, there are many companies who will do all the heavy lifting for you, as long as you have the money to invest.

Tax Deductions

The more people investing in real estate, the better the financial climate. The government knows there’s huge benefits to people investing in real estate for their retirement fund, so they encourage people with tax benefits. Rental income is taxed lower than regular business income, so you’ll have more of a profit. You’ll also be allowed to deduct expenses from your rental income, so investing in real estate is one of the smartest businesses to start when you’re saving for retirement or even looking for additional income during retirement.

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Real Estate Value

If you’re thinking about how real estate compares to inflation, you’re far more likely to get a bigger return from real estate than if you were to invest your money in banks or stocks. Although the real estate market changes constantly, it does always increase, meaning there will always be an ideal time to rent or buy that allows you to gain a return. The need for housing isn’t one that’s going to disappear any time soon, so you can be safe in the knowledge that what you’re selling will always have custom.

Investment Control

Even if you were to buy a company’s stock in the hopes of seeing a return towards your retirement, you’d have no control over the decisions that company makes. When you invest in real estate, the control is in your hands. If you aren’t enjoying being a landlord, you have the option of buying fixer-uppers and selling them on for a profit after upgrading them. You can also set your own rental rates if you continue as a landlord and spend time researching the best properties and locations for gaining a profit.

While other types of investments have you sitting down and hoping for the best, real estate is something you can get stuck into.

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Editorial Staff

Editorial Staff at I2Mag is a team of subject experts led by Karan Chopra.