Regardless of the plans one has for retirement, most everyone can agree that you will need to start saving money as soon as possible.
The way in which a retirement fund is comprised will vary greatly based on individual preference and financial situations, however, it is safe to assume that people will choose the most efficient and timely method. In comparison to stocks, bonds, or many of the interest-bearing retirement accounts that are offered by employers, in terms of positioning yourself for wealth building and retirement purposes, property investing can be particularly beneficial, especially when you invest in turnkey properties.
Times have changed significantly --- people tend to live longer and desire to do more in general. However, the tremendous increase in the cost of living has made it difficult for many people to achieve their specific financial and retirement goals. Relying solely on savings accounts, social security and potential home equity for retirement purposes (as many people do and have done in the past) simply won't be a feasible option for today's generation and most future retirees.
Safe and substantial
Although the real estate market, much like the stock market, is ever-changing and generally unpredictable, the income stream that is offered by property investing can often comprise the bulk of an investor's retirement fund. Similarly, market trends in real estate tend to move cyclically, so substantial returns are attainable even on investments that were made perhaps during a "down time" in the market. Because recovery is inevitable, investments that are made during a housing bust historically have turned out to be rather lucrative ventures compared to stock returns or money that is held in individual savings accounts.
As the demand in the Northeast Ohio market has increased among investors and residents alike, impressive returns have been actualized. Vast improvements in infrastructure and the revival of downtown Cleveland have essentially made this metropolis a preferred destination for college students, business professionals, and even tourists. But regardless of the market you choose to invest in, the location of the real estate investment is vital.
More money, faster
The additional income generated from a 24 percent return on investment in real estate has the potential to create wealth and ultimately establish a substantial retirement fund much more quickly than money held in a savings account earning an average of 0.5 percent APR. Aside from the advantages of being in control of your own retirement fund, there are not many savings accounts or publicly traded stocks to date that will yield an investor similar returns on a consistent basis as that from an investment in real estate.
Although real estate investments typically bear expenses that other investments do not, including property taxes, insurance, and maintenance and management fees, rents are almost always going to rise, as will the overall value of the property in most cases. These gains will not only cover the mortgage and other expenses, but will also provide investors leftover income each month that can be saved or reinvested into future ventures. Because property investing is a long-term investment, the greatest return for investors with property in up-and-coming areas will be realized once the property has been held for a period of time.
Smartland is Northeast Ohio's largest real estate investment firm. Our team combines financial savvy with expertise in property management to help clients identify and invest in alternative investment vehicles that have strong growth potential.