Why Real Estate Is The Best Retirement Investment

Building a retirement fund offers peace of mind and property is largely considered one of the safest long-term investments you can make. 

Although it may seem like a daunting process at first, you don’t need any prior experience to enter the market and it’s a great way to start earning money without having to sacrifice your current job. 

From earning a passive income to having control over capital growth prospects, look no further for the reasons why real estate is one of the best retirement investment options out there.

There’s no need for any prior experience

Unlike other investments, real estate does not require any previous experience or specialized knowledge. 

No matter what background or career you come from, you can learn about property management services as you go with help and advice from experts in the field.

You can earn a passive income  

You needn’t sacrifice your current job in order to make money through real estate. Investing in property will enable you to earn a passive income, which can be saved for your retirement nest egg. 

You may even consider hiring a property manager to take care of daily tasks such as marketing the property, collecting rent, and screening tenants – making real estate a hands-off investment.

It’s a safer investment 

Property is largely considered one of the most recession-proof investments you can make, as people will always need a place to live – even through difficult economic times. 

In comparison to other shares, real estate is a less volatile investment too due to the amount of time it takes to liquidate a property asset.

If you decide to rent out your property for commercial or residential use, you have the chance to earn consistent and reliable earnings from tenants – which will eventually translate into savings. 

You have control over capital growth potential 

In comparison to other investments, it’s easier to assess the capital growth potential of a property.

You can find information on the location, employment prospects in the area, nearby schools, and future property developments online – all factors of which will influence how popular the area will be with prospective buyers and tenants.

You are also in charge of boosting capital growth through renovations and refurbishments. If you do the odd job yourself, whether that’s painting the walls or hanging new blinds, you will save money thus increasing your profit margin.

You can start earning straight away

As soon as you start leasing out the property for commercial or residential use, you can start earning. You can access the equity too unlike other investments. 

Once the property increases in value or your tenants make a significant dent in the mortgage, you have the opportunity to use any surplus funds to make another investment – this could be the first step in creating an investment portfolio.  

You can boost your savings

If your property increases in value, you will benefit from capital gain when you eventually sell. Later down the line, you can reinvest the passive income.

As mentioned previously, you could even consider building an investment portfolio later down the line which could mean purchasing different types of properties in different locations. 

There are great tax benefits

Property investment can provide enormous tax benefits. For example, if your interest and running costs are more than your investment income, you make a loss known as ‘negative gearing’ – a strategy often chosen by investors seeking long-term growth capital.

You may also be able to apply for a Tax Withholding Variation through the Australian Taxation Office. This will enable you to receive a tax break every time you receive your salary. The money saved can be used to put into your investments.

You’re in control of your future

Unlike stocks and shares, you’re in charge of your asset when investing in brick and mortar. 

For instance, you can influence your property’s capital growth potential whether that’s through choosing trustworthy tenants, creating extensions, or making modern renovations to keep it up-to-date with the current trends. 

You can pass the investment on

If you purchase a property in a good location, there’s potential for the value of your investment to grow. 

This means that you could well enjoy capital growth even after your retirement. You could even consider leaving the property to children or grandchildren in the future.   

Whether you’re a buyer, seller, landlord, or tenant, Harcourts is here to help navigate you through your property journey. 

Visit us online if you’re looking for houses for sale in Carlingford or rental properties in Carlingford.

Author Bio:

Harcourts Carlingford, We are real estate agents in Carlingford, we cover all aspects of real estate from commercial or residential property for sales, auctions, property management, and commercial leasing and have a proven track record of success.

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