If you are starting to get to retirement age, you might be considering the possibilities of investing in a Washington-Baltimore metro area property. Perhaps you are fed up with getting very small returns on your bonds, low interest rates from the banks and the unpredictability of the stock market. These days the cost of living is much more expensive and those who are planning to retire will need to think creatively about their investments if they want to have enough to life comfortably, travel and take care of medical costs. Investing in rental real estate can be a great way to supplement your retirement income, but it won’t necessarily work for everyone.
Just like any investment, it is important to know what you are doing before first investing in real estate. You can turn real estate into a profit, but it will take time to know what you are doing.
Take A Look At Your Goals
The days of making a quick buck on real estate are long gone, as the 2008 recession has slowed down the growth of house prices. It’s not as easy these days to buy a home that you can quickly flip and sell for a profit, so you might want to look at real estate as a steady long term income instead.
Are you prepared to take the time and do your research so that you can find a rental property in a good area? Are you ready to put the work into establishing a profit from the property?
Ask Yourself The Right Questions
When you are reviewing real estate investing as an option, take a look at your choices and ask yourself a few important questions. Will the home provide you with a good income? Is there a promising opportunity for the property to appreciate in the future? Does this investment have protection against inflation?
Do You Have The Time To Manage The Property?
One of the issues that might come up when investing in real estate in your retirement is the fact that being a landlord is quite a significant time commitment. You will have to take care of all maintenance concerns, be on hand to settle problems with your tenant, screen potential tenants and much more. Many retired people are not looking for a full time job and simply want to be able to enjoy their free time. Of course, there is always the option of having a rental management company take care of this for you so that you don’t have to worry. If you don’t want the trouble of the maintenance and management of a property you may want to consider at Triple Net Lease property. The tenant will be responsible for the taxes, utilities and maintenance and cooperate backed leases are for 10-30 years on average.
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