Folsom Property Management Blog

5 Benefits of Investing in Real Estate for Retirement

5 Benefits of Investing in Real Estate for Retirement

Retirement is on the horizon for everyone. It's better to start saving now rather than later, given the average retirement could cost at least $800,000. The problem is it's about to get a lot more expensive as inflation continues to rise.

Investment is often one of the best ways to make your dollars work until the day comes when you can't work yourself. Stocks and bonds, 401ks, and even cryptocurrency might be good options. But many turn to real estate for retirement.

Is there any real benefit to real estate over competing options? Keep reading because we're here to give you five reasons why real estate is the answer.

1. Real Estate for Retirement Is Guaranteed Passive Income

Economies will always be in flux, and the value of certain investments may dip in the lean years. But one thing never changes: humans need housing. Rain or shine, recession or economic boom, homes will always be in high demand.

When you rent out a property, you get guaranteed rental income. As long as you vet your tenants well, the lease will oblige them to pay until the contract runs out. And if they move out, you won't have to wait long to find a replacement.

2. Properties and Land Appreciate With Time

Because land and property are in such high demand, buying them tends to be expensive. And over time, any property is guaranteed to appreciate. Estimates guarantee that you can get, in a good year, a 5% increase in the value of your property.

Recessions do happen, such as the housing market crash in 2008. But you can always wait a few years for the market to recover if you want to sell a home.

3. Inflation Is a Non-Issue

Inflation is the scourge of investors of all kinds, but not those who work in real estate. Generally speaking, your property's value will rise commensurate with inflation.

Real estate is an excellent market to be in during times like the present with rampant inflation.

4. It's a Feel-Good Investment

Putting money into Fortune 500 companies or startups doesn't do much to contribute to the local community. But housing does.

You can commit to being a good landlord and providing quality housing for your local neighborhood. You put a smile on people's faces and save for retirement at the same time.

5. Investments Aren't Limited to Single-Family Homes

The great thing about real estate is there is so much variety. You can focus on residential properties,s from duplexes to apartment blocks. Or, you can branch out to vacation rentals and commercial ventures.

But if none of that interests you, you can stay comfortably in residential housing and still make an excellent passive income.

Get Property Management With Residential Equity Management

Real estate for retirement is easily one of the best investments you can make. It provides a solid, long-term investment with passive income. Property appreciation means you can often sell at a considerable profit margin, and there's a wide array of options to diversify your investments.

Are you looking for property management in Folsom? We're here to help. Manage your property with us and give yourself a break from the stress of being a landlord.