Few people can afford to retire early. With inflation, rising healthcare costs, and longer life expectancies, it just isn’t practical. Or is it? With a savvy mind for business, you can retire early by investing in real estate. Here’s why real estate is the perfect early retirement tool.
Flexibility
Retirement’s best perk is the flexibility you suddenly get to enjoy. You can finally spend your time doing the things you love, whether that is globetrotting, golfing, or volunteering (or all three!) The last thing you want is for your supplemental retirement income to tie you down. Enter real estate. Investing in real estate in retirement gives you just enough to keep you from getting bored while allowing you the flexibility to work when you want, where you want, whether that is lounging on the beach or looking at the view from your highrise hotel room!
Scalability
Investing in real estate has over-the-roof scalability. With tenants paying your mortgage for you, you can quickly add additional properties to your portfolio. Just be sure to play it smart. Start small and move up as you gain experience. Be sure that you are growing your money more than you are spending your money. Carefully screen your tenants with a strict contract. And do everything in your power to keep your properties filled. Keeping your units filled helps you avoid issues paying your mortgage.
Reliability
With real estate, your income is reliable. It is normal to see up to 5-10% returns on your investment, as opposed to less than 3% on 10-year bonds. Real estate investments are safe, and the monthly income is dependable. Best of all, your investments are gradually growing into a massive portfolio that can be cashed out for massive amounts of money once the mortgage is paid off. There are also tax perks associated with real estate investments that you don’t get elsewhere. For example, you don’t have to pay social security or medicare taxes on income accrued from your rentals.
If you are itching to retire but don’t know how to pull it off, consider investing in real estate. It is the easiest, most effective tool in your tool belt for early retirement. You get to earn a reliable income, build your portfolio, and scale your properties, all while maintaining the flexibility so imperative during your retirement years. Invest in real estate and get ready to pull out your passport, dust off your golf clubs, and enjoy your retirement while you still have your health and vitality!
Check out this article on what you can do to plan better for health expenses!
