Retirees still need to make money, whether to live on during retirement, save for emergencies or to pass on to family. For those with the resources, real estate may be a good investment for the latter years. Here, I'll look at why real estate investing makes sense for retirees along with some sound investment tips.
For those with only stocks, diversifying the investment portfolio with the addition of real estate makes it stronger. It also leaves something to pass on to family. Some investment options include multifamily housing; buying, remodeling and selling homes (flipping) and commercial-office or retail.
There are different considerations when purchasing investment property during retirement. A wrong investment for a retiree is financially devastating, potentially pulling from other crucial investments. A wrong investment at 30-years old, while still disastrous, leaves years for recovery. Age and health also factor in, as retirees may not have the stamina to put into a time-consuming investment, such as a large multifamily property.
When researching an investment property, consider the time frame for liquidity and financial recovery. Retirees will want an investment that pays off in the short- rather than the long- term. Waiting too long to recoup costs is not advantageous when retired.
As retirees have different needs than younger investors, here are some tips to ensure a successful investment.
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