Can brick and mortar be a reliable option for your retirement?


I like this.


In the last 10 years or so, brick and mortar has rendered incredible returns for people, thus motivating them to treat their home or personal property as if it was their pension. People have a lot of faith in their homes because it’s a tangible asset. When they retire they will be able to live comfortably in their homes, get a second mortgage, and maybe invest the extra cash in something else. Unlike bonds, stocks, shares and alternative investment such as wine, gold, and art, property seems to have a lot more potential. The risks involved when renting it to make a good profit are not that striking.

The appeal of owning property

Property is probably one of the most trustworthy type of investment. However, many retirees don’t see it as an investment, but rather as reassurance that no matter what happens with today’s economy, they have a place to live. But then again, brick and mortar does come with risks, and retirees should be aware of that fact. For example, when you choose to sell, rent or buy, you should know that there are costs involved. Realtor fees, agency fees, legal costs, inspection fees, etc., all come at a specified price.

The good news is that one can avoid them, or at the very least not pay them in full. Annual maintenance costs can also make a hole in your pocket, especially when you rent property. Irresponsible tenants will do more harm than do to your house, and rather than have that extra cash, you’ll end using the rent you receive monthly to perform all kinds of fixes.

How to steer clear of hidden property costs

Aside from the annual costs for maintenance, owners will also have to deal with legal safety certificates. It might be a good idea to know about all of these in advance. Otherwise your returns will be lower when you rent or sell. Brick and mortar is a valuable form of investment because it can easily be sold, and the money is available right away. Pensions on the other hand, are locked until you retiree. In both Europe and the US, the average retirement age is somewhere between 55 and 65.

Unlike stocks and bonds, brick and mortar has a lower volatility rate. In spite of the fact that there are costs involved (just like with any other form of investment), the returns are higher than if you had chosen an alternative type of asset such as equity or stocks.

Brick and mortar – benefits involved

When you retire, the best way to boost your income is to invest. However, if you’re not a savvy investor, it might be a good idea to play it safe. Don’t throw money on investment forms you can’t understand. Stick to brick and mortar and you’ll live comfortably for years. The global economy took a hit in 2008, and it started to recover in 2012 when real estate increased in value with as much as 11.2%. That was the annual return someone would expect when investing in property compared to other available type of assets.

Only the savviest retirees know that investing in property has great potential. Leaving aside the fact that you are an owner and you can do whatever you want with your home, there’s the return potential. Owning can be transformed in a wealth of additional investments, such as renting or flipping. But then again, flipping houses is not for everyone.

Having an investment portfolio when you retire is a great way of ensuring that your senior years won’t pass by in a struggle to make a living. It’s tough to make decisions when it comes to investing; but it’s a good idea if you want to make extra cash and not live off on your pension. Before you get started, you are advised to consult with an experienced broker or investment consultant. Only a professional can help you make sensible decisions. Don’t do it all on your own because you’ll end up losing more rather than earning.

Bottom line is brick and mortar is an excellent form of investment as long as it’s done right. Property has great potential, and renting, selling or buying can bring you amazing returns in your senior years.

Tags: , , , , , , , , , , , , , , , , , , , , , ,

Post a Comment

Your email is never published nor shared. Required fields are marked *


Subscribe without commenting