How to Use Residential Property as a Retirement Vehicle
Residential property has been an extraordinarily strong investment since the mid-1990s. Many property investors have started with one or two properties only to eventually wind up with a portfolio consisting of dozens (or more), all of which generated residual monthly income. They set up their retirement by developing a portfolio they could eventually sell for millions.
Of course, not everyone who invests in residential real estate becomes a millionaire. But that does not mean residential property isn't a worthwhile investment. It actually is. More importantly, there are three ways you can use property as a retirement vehicle.
Housing Will Always Be in Demand
Before we get to investing in residential property, let us discuss why you should. It boils down to one simple fact: housing will always be in demand. As long as people roam the earth, they will need houses to live in. They will need houses even if the stock markets crash. They will need houses even if gold eventually becomes worthless.
Another thing to remember is that rental housing will always be in demand as well. There will never be a day when every house is owned by the person who lives in it. Therefore, there will always be room for investors whose business revolves around residential rentals.
With that out of the way, let us get to the three means of using residential property as a retirement vehicle. If you are already over 50 and looking to supplement your current retirement savings, you can do so with property. You are not excluded because of your age. However, you might want to think about getting specialised mortgage advice for over 50s regardless if should you choose one of the first two options.
House flipping was all the rage during the late 1990s and early 2000s. It was fuelled by continually rising house prices that were capable of making investors wealthy in short order. Investors would buy cheap, rundown houses that needed modest renovations before being put back on the market again.
This strategy is not as popular today as it once was, but it is still viable if you know what to look for. The goal is to turn properties around as quickly as possible. The sooner you can sell, the more money you make with flipping. How does it work?
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