Wondering if real estate is a good investment for your retirement? You have come to the right place. Although you can choose from a number of investment options—including stocks, gold, bonds, and more—real estate can offer substantial retirement funds.
The purchase or sale of commercial and residential properties or land is real estate investment. Real estate is a tangible form of investing.
When you invest in real estate, you are actually dealing with a physical property or land. But, despite the importance of the real estate sector in the economy, many people fear investing in real estate for their retirement.
This is because they fear that the history might just repeat itself. Another reason is the non-liquid nature of real estate. Investment tools, such as bonds and stocks are more liquid and are easier to buy and sell than real estate. Not to mention, many people find real estate investments confusing and intimidating.
However, it can provide ample benefits to retired individuals. Let’s check them out:
- Renting a residential or commercial property offers stable returns in the long run. There’s no denying that you will have to spend money initially on house maintenance, taxes, etc. But, you will be earning a stable income (rent) every month.
- You can monitor and track your investment, i.e. land or property throughout the year. This will reduce the likelihood of fraud.
- Real estate is an inflation-hedge investment choice. In other words, rising prices leads to a rise in the resale value of properties as well as rental incomes.
- Real estate investors may receive several tax benefits, such as lower tax rates for long-term profits.
Keeping these benefits in mind, there’s no doubt that real estate is a great investment avenue for long term investors.
That said, holding a diversified investment portfolio is imperative to minimize the risk of losing all your finances at once. You may invest in stocks, bonds, real estate and other securities. Research each security before investing your funds.
For more information on real estate, insurance and similar subjects, check out Gregg Marcus’ blog. Gregg is a humanitarian, philanthropist and insurance executive who provides complete guidance and assistance in several states, including Georgia, North Carolina, Texas and more. He handles an array of insurance policies, including personal, business, property and casualty and more.