Retire on an Income Property
It might be wise to include an income property in your
retirement plan. When it comes to planning for retirement
diversity is king. Naturally your portfolio will include
investments in the stock and bonds market, but as you approach
retirement age you might want to consider investing your money
in something a little less risky which can provide adequate
returns. Early in life your risk profile is much greater because
you have time on your side. Unfortunately, as you grow older
time is no longer on your side and you will need to diversify
away some of the riskier investment positions your hold.
Investing in an income property is an excellent way to address
this dilemma. Owning an income property can provide you with a
couple of advantages. First, investing in an attractive income
property can result in positive profits each month. Often times
we think of investing only as a form of increasing your money
after a long period of time. However, investing in an income
property offers the investor the ability to make money now as
well as in the future.
The investor makes money now by running efficient operations. In
the case of an income property, an investor can turn a profit
from month to month by charging enough rent to service the
monthly debt and cover the other expenses related to the income
property. Such a scenario bodes well for the retiree who needs a
form of income to see him through the end of his life but who
obviously doesn't want to spend his time working fulltime to
earn this income.
In fact, investing in an income
property can prove extremely beneficial to the retirees kids
and grandkids. Assuming the retiree holds on to the income
property for the remainder of his life the ownership of the
property will likely be passed on to his kids. If they are
interested in managing the property they can continue to benefit
from the monthly profits it turns. On the other hand they might
be enticed by the equity built up in the property and the
increased value the property has obtained over the years. As
result the kids could cash in on the income property by selling
it to the highest bidder.
Whichever way you look at it, an income property proves to be a
very attractive investment opportunity. As we have discussed,
the income property can be used to ensure the retiree has a
steady cash flow. In this manner it serves the purpose of
helping sustain the retiree until he passes on. The added
benefit of course comes when the income property is eventually
sold, bringing in big flow of cash that can then be reinvested
in other manners.
Adam Smith is an informational author for 10X Marketing.com To
learn about making a positive cash flow from investing in Real Estate, visit
SNCLoans.com