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Investing in Real Estate for Your Retirement (and Now!)
You've probably heard a lot of opposing information about Investing in Real Estate, which is completely annoying! The straight-forward fact about Real Estate is that it is probably the best and safest investment you'll ever make, especially if you live in it, and that you are far more likely to make money in this market than with any other type of investing. The chances are very slim that you'll wake up one morning and the housing market will have dropped by 40%. Egads! That ain't good! In general,Real Estate values always go up. There are some Apartments in Calgary (Alberta, Canada) that I wanted my husband to buy (he wouldn't, but that didn't stop me from asking!) about five years ago. Back then, the Apartments were selling for $96,500.00 for a Two Bedroom place, and now that same unit is selling for over $150,000.00. Quite an increase in value, eh? (You're learning how to speak 'Canadian', too!) That's over $50,000.00 in gross profit, for the mathematically challenged (me included!). We sure didn't make that kind of profit in the Stock Market in that span of time. Now, if that were your Primary Residence (the place you actually live), and you had lived there all that time, you would make that profit tax free. The same profit made on the Stock Market would be subject to regular taxes, which totally sucks, since you were the one to invest in the first place, and you were the one to take the chances, but, them's the laws of the land - what are you gonna do?? That's right, buy Real Estate! Ha,ha! Buy Apartments or Condos One of the best bits of financial investment ideas that I ever got was from an old boyfriend of mine, Ben Johnson, the Olympic Runner. (Remember him? Turns out, great guy, bad rap, punished more than any real criminal, very wise business man - funny how the press doesn't focus on that?) Anyway, his idea was to buy 15 apartments and rent them at approximately $1000./month (he lives in Toronto, Canada where the rents are high, if that seems exorbitant to you, or low, if you live in New York, and that seems waaay too cheap! ha,ha!). That would give him a regular 'income' of about $15,000./month, provided that the properties are owned outright. Good idea, eh? Now, we can't afford that many rental properties, yet, but the idea is a good one. I don't know if he ever actually did that, but he planted a seed in my mind that will allow my husband and I to build a solid foundation for a comfortable retirement. I happen to be partial to the idea of buying new apartments in a regular Apartment Building as opposed to Town Houses, Duplexes or Single Family Homes, because you don't have to worry about serious repair problems, like a new roof or furnace! Those problems can add up to some serious bills for the Property Owner. New or well-cared for buildings are unlikely to require repairs within the first five years, and if you purchase in a Condo Development, your renter can pay the Condo Fees, which will cover any major building repairs. You will, of course, be responsible for general up-keep, but even that will be minimal if you have good renters and start with good stuff. If you are reluctant to get into the 'Landlord' game because of the whole 'collecting the rent' thing, you can always hire a Property Management Company. They'll handle everything for you for a relatively small fee. When you're first looking at Rental Properties, Apartments specifically, try to find one that is relatively inexpensive, and make sure that you are in a financial position to carry all the costs involved if you don't have a renter. Be careful not to pick up a 'real steal' that needs a huge amount of work - you won't save any money on this one - it could ruin you, financially, too, if there are too many complications in the deal. Again, I prefer new, but an apartment in good repair is fine, too. Only you will know how much you can take on. Also, check with your Banker or Broker to ensure that you qualify to carry a mortgage on the new property. The Interest Rates are particularly low, right now, so this is a great time to invest in property. The great thing about having rental properties is that not only will you be gaining a perpetual monthly income (the difference between the costs of operation and the rental fee), when you are ready to sell the property, you'll get back all of your initial investment and you'll have the equity spread as well. If you happen to live in the Property for a couple of years, or so, yourself, then any profit you've made will be tax-free, since it will have been your Primary Residence. Always check with your Accountant to comply with local tax laws. Also, you may be able to hand the property down to your children. Amazingly enough, this is no longer a basic right of a parent in certain countries without some one paying massive amounts of taxes, making it virtually impossible? Man, can't wait to live in the States, again! Our own plan is to pay off our Mortgage on our Primary Residence, then use the money that we would normally put toward the Mortgage Payment to get a mortgage on a Rental Property - an Apartment. I like the idea of purchasing a number of apartments on the same floor of an Apartment Building, or at the very least, picking up another apartment in the same building. It seems to me that it would be waaay easier to manage properties if they're close together. Also, we'd like to have an apartment available for each of our children when they are old enough to move out on their own. They could have the choice of having a room mate, themselves, who would pay them directly for their share of the rent. That way, our children could learn first-hand how to be landlords (Man, I really don't care for that term!) and we wouldn't have to worry about where they're living and whether they have any money for groceries! Scoooore! The other thing that is key to a comfortable retirement is that the properties you acquire before you retire may be paid off before your actual retirement date, if you have one. If you're living well on your regular income (not including the rental income), then you can put a larger portion of the rental income directly on the Principle of the rental property mortgage. This will give you a higher monthly 'income' later. (I thought this Ad was really funny!! Of course, It's Great to Be A Landlord, so you can still shoot for that!! ha,ha,ha!) Ailsa Forshaw is a Writer, Builder, Website Owner & Manager, Teacher, Mother... all in Alberta, Canada. She is Married with Two Lovely Children, and one gorgeous wee dog. Her Website, http://www.buildyourownhouse.ca, is chock full of all sorts of useful & fun information to help anyone become Financially Successful, Slim, Trim, and Happy... what more could you want?? Pop in for a wee visit! http://www.buildyourownhouse.ca http://www.theScottishDiet.com
MORE RESOURCES: The Folly of China's Real-Estate Boom Was Easy to See, but No One Wanted to Stop It The Wall Street Journal Judge Approves $418 Million Settlement That Will Change Real Estate Commissions - The New York Times Homebuyers and sellers might spend less following major real-estate settlement - Evanston RoundTable Homebuyers and sellers might spend less following major real-estate settlement Evanston RoundTable Judge approves multimillion-dollar Realtor settlement, upending the way Americans buy and sell homes CNN Former HGTV star gets jail time for real estate fraud KFOR Oklahoma City Agencies' headquarters in DC remained 'nearly empty' in 2023, real-estate board finds Federal News Network The Highest Paid Execs in Real Estate Mike DelPrete Alabama Realtors release March 2024 Economic and Real Estate Report Alabama Political Reporter Woodsist Festival Unveils 2024 Artist Lineup: Yo La Tengo, Real Estate, Jessica Pratt, Woods and More jambands.com Real-estate agent's ritzy Hamptons home used in fake Airbnb scam Business Insider Kevin Owens joins Scottsdale-based Lessen real estate company | Scottsdale Independent Daily Independent Chris Hemsworth's Homes: Inside the Marvel Star's Real Estate Portfolio Architectural Digest Blackstone's Beleaguered Real-Estate Fund Stems Exodus The Wall Street Journal Reversing the Real-Estate Doom Loop Is Possible. Just Look at Detroit. The Wall Street Journal Recent commercial real estate transactions - 4/24/24 BizTimes Milwaukee Baltimore City: See how much real estate prices increased the week of Dec. 11 - The Baltimore Banner Baltimore City: See how much real estate prices increased the week of Dec. 11 The Baltimore Banner Santander now servicing $9B NY real estate portfolio previously held by Signature Bank Long Island Business News People and Property: Real Estate and Construction News From Around NH New Hampshire Business Review Real estate taxes due April 30 for Codington County property owners Watertown Public Opinion reAlpha Tech Corp. Launches Claire, Real Estate's First AI-powered, Zero-Commission Smart Buyer's Agent Business Wire Real Estate Group Plans Anti-Transfer Tax Campaign State House News Service @properties and Christie’s International Real Estate opt to settle broker-commission lawsuits Chicago Agent magazine Rogers plans sale of data centres, other real estate as it zeroes in on debt Yahoo Canada Finance The World's Wealthiest Individuals Are Focused On Real Estate - Here's How You Can Build Your Own Real Estate ... Yahoo Finance Woman shocked to learn her Hamptons home was fraudulently listed on Airbnb after call to wire $25K New York Post FLAGSHIP COMMUNITIES REAL ESTATE INVESTMENT TRUST ANNOUNCES CLOSING OF APPROXIMATELY US ... Yahoo Finance Woodsist Festival Announces 2024 Lineup Feat. Yo La Tengo, Real Estate, Jessica Pratt, & More Stereogum Housing Market Alert: Mortgage Demand Dips, Will Prices Crash? Norada Real Estate Investments Fennemore renews Biltmore lease with smaller footprint amid firm's national expansion - Phoenix Business Journal The Business Journals Real estate group launches campaign to defeat transfer tax - Boston Business Journal The Business Journals Judge approves real estate commissions settlement Yahoo! Voices Earnings call: Alexandria Real Estate Equities posts strong Q1 results By Investing.com Investing.com Choice Properties Real Estate Investment Trust Reports Results for the Three Months Ended March 31, 2024 Business Wire Core equity real estate index posts another quarterly loss Pensions & Investments A Look at the Real Estate Market in Milwaukee's Suburbs (2024) Milwaukee Magazine Real Estate Transactions Business West Invest DSM moving forward with The Commons at Highland Park Local 5 - weareiowa.com Forget 2008: Why Today's Housing Market in 2024 is Different? Norada Real Estate Investments Acore Capital raises $1.4bn for US real estate debt fund IPE Real Assets Banks Believe They Are Well-Prepared for Commercial Real Estate Fallout The Wall Street Journal University of San Diego real estate team wins first place in 2024 ARGUS University Challenge Daily Commercial News Who's Who in Residential Real Estate 2024: The 25 top-selling Realtors in Pittsburgh - Pittsburgh Business Times The Business Journals Woodsist Festival 2024: Yo La Tengo, Real Estate, Jessica Pratt, Bonnie 'Prince' Billy & more Brooklyn Vegan Real Estate Sales Include Two Falconer Commercial Properties Jamestown Post Journal Top residential real estate sales for April 8-12 in Longboat, Lido, St. Armands, Bird Key Your Observer 5 Experts Dish on Philly's Real Estate Market Philadelphia Style | Modern Luxury Fort Worth Realtors group honors members' contributions Fort Worth Business Press Sponsor our real estate and development series Racine County Eye Baron Real Estate Income Fund Q1 2024 Shareholder Letter Seeking Alpha Santa Ana real estate development is surging New Santa Ana Is The Housing Market Going To Crash? Bankrate.com Real estate is still moving, but a little slower Yoursun.com Manhattan Real Estate Update: "Embrace the Boredom" westsiderag.com 10 Real Estate Charts Showing What's Next for Housing: Ivy Zelman Business Insider Pinellas Beaches Real Estate April 11-19 The Gabber Newspaper |
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