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Retiring Happy With Real Estate...investment Plan... - Properties - Nairaland

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Retiring Happy With Real Estate...investment Plan... by reantv(m): 9:48am On Nov 01, 2016
RETIRE WITH REAL ESTATE INVESTMENT...

As you approach retirement, if you take a holistic view of your personal wealth, ownership of a home, outright, without any debt against it, is one of the best investments a person can have.

Not only can the equity be tapped in certain transactions, including reverse mortgages, but the cash flow saved from not having to rent, in most circumstances absent unusual market forces or conditions, results in net savings, the profit component that would have gone to the landlord effectively staying in the homeowner's pocket.

This effect is so powerful, even back then economists were trying to figure out a way for the Federal government to tax the cash savings over renting for debt-free homeowners, considering it a source of income.

This is a different type of investment, though -- a strategic one. Were the economy to collapse, as long as you could pay the property taxes and basic upkeep, no one could evict you from your home.

Even if you had to grow your own food in a garden, there's a level of personal safety there that matters. There are times when financial returns are secondary to other, more practical considerations.

Whatever you do, though, don't sacrifice your liquidity to try and build equity in your real estate investments too quickly as that can lead to disaster including bankruptcy.

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