Retirement and real estate: 3 things you need to know

Saving toward retirement is not a bad plan. In fact, working on a retirement plan works better when you start quite early. One way to do this is to invest in some real estate to use as rental properties, bring in the rental payments, and sell off those properties later.

Real Estate as a Retirement Vehicle

You might not agree, but real estate is an investment policy that encourages total control. As a result of owning real estate rental properties, you get to be in total control of how your income gets to you. Hence, you can control when you retire.

The Added Benefits of Rental Properties

If you want to retire early, you want to consider using rental properties for your cash revenue. Other relevant factors that make investing in rental properties more appealing than investing in most retirement vehicles are benefits such as significant tax advantages and value appreciation.

Real Estate Offers Significant Tax Advantages

Real estate offers significant tax advantages! With evolving real estate tax features such as phantom expenses, you can pay cheap tax rates on the income generated from rental properties.

Real Estate Almost Always Appreciates in Value

When you buy into real estate, you can only be certain of potential benefits if you met certain conditions. One of these conditions is that your buying price was not inflated, giving you at least a 15% annual cash on cash return. Another is not acquiring your real estate during an obvious bubble in the market. The third is that you plan on retaining each property for a minimum of 20+ years. Even if not all conditions are met, remember real estate almost always appreciates in value.

Consider using real estate as a retirement vehicle. If you use real estate properties to generate rental income, you might be able to retire early.