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Real Estate Investment For Your Retirement
Author: Hunter Craig  | Posted: 31-05-2008 | Comments: 0 | Views: 10 | Rating: (50)  (?) 
Real estate investment can be a fantastic way to build equity, gain capital and increase your net worth as you prepare for retirement. To learn more about the different ways real estate investment can help you in your retirement and create income streams, keep reading.
Equity
Acquiring real estate property over your lifetime can be a great way to build equity. With patience, almost all real estate will appreciate in value over the course of many years, even in a sluggish or down market.
You can then borrow against equity in the property or sell the real estate for cash and use the proceeds for investment opportunities or more liquid income. Putting some of those capital gains into a retirement savings fund could even save on your capital gains taxes while still protecting your nest egg.
Rental Income Streams
A real estate investment property doesn't have to sit empty. You can earn income on that property through tenants and rent. By renting out a property with a mortgage on it, you can use the rental income to pay most or even all your monthly mortgage, cover maintenance fees and even see a small monthly profit. In the meantime, you'll be accumulating equity on the home.
Once the property is paid off, that rental income becomes pure profit after maintenance costs while being a landlord can offer you tax breaks on everything from property expenditures to fees for property management companies.
If you're older or simply don't have the time to screen tenants, shovel snow and ice off walkways or maintain a property, hiring a property management company can take care of that need. Certainly doing so will cost you money, but they can take care of all the duties and obligations associated with being a landlord.
Flipping Properties
While purchasing low-cost housing, improving it and later reselling it for a profit involves a lot of sweat and hard work, it can be a great low stress "job" for the retiree. Before you invest in real estate flipping, invest your time in location research, planning and finding a great real estate agent. This is one area where the virtue of patience can pay off handsomely.
Reverse Mortgages
A reverse mortgage can turn your property equity into liquid cash while you retain ownership on the property. Typically, no payments are required on the home equity loan until you are either no longer resident on the property or you sell it.
However, interest will begin to accumulate on the property as soon as the reverse mortgage process begins. This means you won't have to make payments, but your loan will be accruing interest. The loan is then paid from the proceeds of your estate or, again, once you move or sell the property. If you pass away before the loan is paid, the inheritors of you home would need to do so.
By turning your property equity into cash, you can create an income for yourself during your retirement years. But remember that you will be simultaneously depleting your net worth and the overall value of your estate. So this is a tradeoff that merits due consideration before jumping in.
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Frequently Asked Questions
Give it back to the bank?
By: terri | 24-08-2008
we recently have been transfered and have to put our home on the market how can we sell our home if someone can't get a loan on it with homes in the area being forclosed on..the 1.5 million homes are going for 700 to 800 and some as low as 500..we paid 1.0 and have 100 out of our pocket in improvements..we are willing to sell for our mortgage at 990 but there are no comparisons and it won't appraise now for that so how do you sell it?
Looking foe atlantic mortgage..
By: PRPDD850 | 24-08-2008
Does anyone know what happened to atlantic mortgage & investment co in jacksonville,florida. Last dealings i had with them was in 1999. Need to find out who took them over etc. ??
Who gets the house when someone dies
By: Pam | 24-08-2008
my grandparents died 13yrs. ago. their house wasn't taken out of their names, but my mom thinks that her, her sister and brother may be listed on the deed. my uncle just died, what happens to the house
How to retrieve mail
By: Chilly-Philly | 24-08-2008
Hello today i was trying to print something i received on august 1, 2008, printer wasn't working so made a mistake and rebooted computer before saving mail. Once i got printer working, august 1st mail had fallen into the old mail file, but my old meail only goes back to august 2nd. How can i retieve my august 1st mail?
What are parcel homes?
By: LHartsuff | 24-08-2008
what are parcel homes?
Does 40 duplex condos on one property need 51 ...
By: dahanos | 24-08-2008
does 40 duplex condos on one property need 51% owner occupancy to qualify for a reverse mortgage?
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