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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: Barron Tower? Trump’s Youngest Son Follows Father’s Footsteps, Set To Relaunch Real Estate Company Hindustan Times Real estate transactions top $4M for Jan. 9-15 Steamboat Pilot & Today Aspen Real Estate Snapshot Jan. 20, 2025 Aspen Daily News Real Estate Transactions, Jan. 20 edition Hopkinton Independent These 8 charts show what bubble-spotter Ivy Zelman thinks will happen in the US real-estate market after the least affordable year since 1984 Business Insider Barron Trump business partner clarifies future of luxury real estate venture: 'Will not be relaunched' Fox Business New report predicts rough 2025 for Las Vegas Valley residential real estate Las Vegas Review-Journal RioCan Real Estate Investment Trust Announces Offering of $550 Million of Senior Unsecured Debentures Business Wire In addition to its new Delano office, this firm is now opening on the west side, too - Wichita Eagle Decoded: The ‘behind-the-scenes demands’ over Clear Cooperation Real Estate News Barron Trump following in dad Donald's footsteps as he prepares to launch luxury real estate venture Hindustan Times The Next Big Thing: Market Trends 2025 to explore the future of Southwest Florida’s real estate market on March 20 Priority Marketing Real Estate Transactions | 1-15-25 The Republic-Times Accurately analyzing the local real estate market Bitterroot Star Barron Trump reportedly following in father's footsteps, launching his own luxury real estate venture Fox Business Anywhere Real Estate’s Charlotte Simonelli on navigating 2025 with financial discipline and the help of AI HousingWire Kirkley offers 2024 DeSoto County real estate market trends and 2025 outlook DeSoto County News Real Estate Property Sales filed filed Jan. 8-12, 2025 Fauquier Times APCO's Camarco Handles Bain's Real Estate Deal O'Dwyer's PR News Hamptons Real Estate Market Data – Week of 1/14/2025 Hamptons.com Brown & Riding names Lally real estate practice leader Re-Insurance.com Revolve Real Estate, for all your real estate needs PAHomePage.com How Northeastern students are redefining real estate with purpose and perspective The Huntington News Trump Orders ‘Emergency Price Relief’ on Housing—What Does It Mean? Realtor.com News Chicago real estate brokers accused of discriminating against housing voucher holders Crain's Chicago Business Why one broker took on NAR: ‘They just keep overreaching’ Real Estate News Central Texas real estate agent shares insight on the 4,000+ homes sold in Bell County in 2024 25 News KXXV and KRHD Real Estate Transfers Fairburyjournalnews Radio Real Estate 1/18/25 My Bellingham Now Energy Value: A New Imperative in Assessing C&I Real Estate Microgrid Knowledge A horse-lover's haven in Middleburgh - Real Estate Roundup The Daily Gazette Texas Permanent School Fund adds to $250m real estate IPE Real Assets The U.S. Government Has a Landlord, and Trump Isn’t a Fan The Wall Street Journal Drake Lists Beverly Hills Estate for $250K a Month While Expanding Luxury Real Estate Empire The Source Magazine West coast real estate firm acquires first Valley property in Tempe Daily Independent Barron Trump launches real estate company as father Donald reclaims US presidency The Times of India Redfin Welcomes December Agent Hires Redfin News January 14-16 Gulfport Real Estate Sales The Gabber Newspaper Real estate transactions recorded from January 0-13 Americus Times-Recorder Hernandez Development, XSITE Real Estate close on site for future Deer Park self-storage facility REjournals.com Americans Can Easily Buy Real Estate in These 8 Countries House Beautiful These Trump executive orders could impact real estate The Real Deal NexPoint Diversified Real Estate Trust Completes $95 Million Refinancing of Marriott Dallas Uptown PR Newswire LA fires spark a call for real estate ‘unity’ Real Estate News Pinellas Beaches Real Estate January 14-17 The Gabber Newspaper Barron Trump's luxury real estate business 'teased with five word statement' from friend The Mirror US Undercover sting exposes rampant housing discrimination across Chicago area, watchdog group says WBEZ Chicago Inside the Gaza Deal: How a New York Real Estate Developer Took on Netanyahu and Hamas The Wall Street Journal Lange Real Estate expands residential development with new teams, office The Business Journals 10 Years In Prison For Former Real-Estate Attorney Jersey Shore Online Resilient California Housing Market Defies Challenges in 2024 Norada Real Estate Investments 'It's going to hurt': Real estate expert discusses how Trump's deportation plans could affect housing Yahoo Finance Bill Ackman Offers $1B For Real Estate Giant Howard Hughes To Emulate Berkshire Hathaway Yahoo Finance Top Real Estate Agent in Kirkland, WA, Honored for Advocacy and Leadership at Annual Realtors Gala openPR Parvis Launches the Parvis Direct Access Fund to Broaden Real Estate Investment Opportunities Yahoo Finance How the Fires Will SEVERELY Impact L.A. Real Estate, According to Celebrity Agents - House Beautiful FGE says no protection for Dispossession Cartel that illegally seize real estate - Riviera Maya News 6 Sacramento-area real estate projects to watch in 2025 - Sacramento Business Journal Sacramento Business Journal |
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