Ideally, we all want to be able to enjoy our retirement years without having to worry about having enough money to pay the bills and to keep a roof over our heads. This is why you need to do everything within your power to create a financial portfolio that can provide for you in your later years and for your family as well. This means that you need to think about investing in certain things and some things come with higher risk than others. The good news is that investing in real estate has been working for many decades now and it doesn’t show any signs of fading away.
People who invested in property 30 years ago are now able to retire early because the prices of property have gone through the roof. If you are just starting off then you would be advised to get yourself involved in what is known as beginner real estate investing and the likelihood of your investment growing over the coming years is pretty high. Clearly you should have a diverse portfolio but purchasing property needs to be part of it. The following are just some of the reasons why buying property should definitely be a part of your overall financial portfolio.
- It offers you cash flow – If you invest in a property then there is nothing to say that you have to live in it and so it would make a lot more financial sense to rent it out until your retirement years come around. This means that you have steady rental income every single month until you decide to move into the property yourself in your retirement years or to sell it off completely. All you need to do now is to find yourself a tenant that is reliable and that will stay in your property for the long-term.
- Excellent return on investment – We can only use past history of real estate as our future guide and the future is looking very rosy indeed when you buy an investment property. Property prices have continued to go up over the past number of decades and it doesn’t show any signs of slowing down. This means that if you invest in property today, it’s highly likely that it will grow in value over the next decades until your retirement and then it will provide you with an excellent nest egg that will allow you to retire in comfort and style.
There are a number of tax advantages associated with investing in real estate and so you can deduct expenses related to your property which helps to reduce your monthly payments. You are actually investing in your property to increase its value so this is a win-win situation for you every single time. Owning a property as part of your investment portfolio also provides you with long-term security and this is something that you can hold on to for many years until it appreciates significantly in value that you want to sell it.