Owning Rental Properties for Retirement Income
There are many ways to fund your retirement including building a nest egg by saving over the years, investing in stocks or annuities, and funding retirement accounts such as a 401(k) or IRA. If managed properly, all are excellent ways to build a portfolio in which to live on after working. However, there is another means of funding your retirement that is very attractive to savvy investors: owning income-producing rental properties.
A traditional retirement plan involves using a certain amount of your nest egg each year to live on. As the years go by, the nest egg dwindles down and your net worth decreases. Including rental properties in your portfolio can keep your wealth growing, not shrinking. With proper cash flow, you’ll find the rental incomes paying you month after month and the expected property appreciation over time can add to your net worth.
Your ROI Will Adjust with Inflation
The money invested in the stock market, for instance, will be worth less over time due to inflation. Rents, on the other hand, keep pace with inflation, as do the home values themselves. As inflation increases over the years, so can the rents you ask for.
The stock market and the housing market usually rise and fall independently of one another. Owning a portfolio of both is smart business to balance out the poor performance of one or the other at any given time.
Most expenses for the property are completely tax deductible: property maintenance, closing costs, property management, accounting and legal fees, even the mortgage interest itself. The IRS also allows investors to take depreciation deductions each year on the properties you own.
Buying undervalued, cash-flow properties takes expertise and know-how. That’s why having a trusted team at your disposal to hunt down those properties is key. Turn to us to guide you into rental properties for funding your retirement. Contact The Luckys at 602.320.8415 or firstname.lastname@example.org.