If you’re looking for extra income after you’ve retired rental properties can be an excellent opportunity to generate cash. A well maintained piece of property in a great location can bring in an extra several hundred to a thousand dollars a month after your expenses clear.
Real estate is a great asset to maintain during retirement, as reliable tenants mean reliable income. This is especially important for investors that don’t have a pension or additional income every month.
There are important factors to consider before taking the plunge and investing in real estate to help fund your retirement:
- Your properties will generate income every month, but will also require an initial investment and expenses to maintain them.
- Research the location of your properties, make sure they’re in a growing or stable community where rent income will cover the cost of your investment and maintenance.
- You may enjoy additional tax advantages to owning rental properties. Speak with an authorized accountant or specialist to find out how these may benefit you and your retirement plans.
- Rent can increase over time, so as your investment is being paid down your income may continue to grow.
- If your units remain vacant they will not generate income, so it’s important to take precautions to keep tenant flow steady.
- Understand that investing in real estate or rental properties can mean additional work- you will either have to maintain the properties and manage the tenants or hire someone to do this for you.
- Consider if you’d like to own property close to your home, or if you’re a snow bird- purchasing property in the community you intend to retreat to every season.
There are pros and cons with every investment opportunity. Rental property investment can be an excellent way to continue to generate income after your retirement as long as you’ve weighed the risks and are ready to manage your units. Some retirees enjoy the additional activity of participating in their investments, while many prefer to hire property managers to keep their investment maintained. If you’re interested in learning more about investing in real estate for your retirement, browse our website for more information or give us a call at (636) 573-1200.