Why Buying Property is the Most Effective Retirement Strategy for Life After 65

What’s your idea of wealth? A thick bank account? Everyone has their own definition of it. Some count it as being able to spend money without even thinking about the changing numbers in your saving account. However, arguably, tangible assets like estates, property, a home, a car, land, etc. – are examples of wealth that you can count. It’s the kind of wealth that is good investment and pays many benefits in the long run.

While the 2008 financial crunch really did have a strong impact on the real estate market, the economy has begun to recover and coming back up with a bang. For those who bought property when property prices were low, it’s time for them to rejoice. Therefore, property buying works as one of the best ways to save for retirement and ensure positive results. How does it help?

Property prices go up with time
One word – inflation. There’s no time, other than something like a major financial global crunch that occurred in 2008, which can make property prices go down. So real estate is a safe investment. If you’re planning to retire five years from now, or even ten years, investing in real estate is your safest bet to a financially sound life after you take the back seat from working full time to relax in your golden period. For e.g. if three years ago you had to pay $1000 per month for a 1 bedroom apartment, you will have to pay $3000 a month for the same, if you intend to buy one today. So if you’re retiring 5 years from today, now is the time to invest in real estate.

Easier to manage than putting a foot in the stock market
While some suggest putting some money in stocks can give you quick returns, it is highly volatile and risky. I personally find investing in stocks a little too risky for someone who is soon reaching retirement. I’d rather buy property in a good location and put it out on rent. Yes, it’s important to ensure the location, neighborhood, amenities nearby are good – as these factors influence property prices. So if it’s a good community with all facilities like healthcare clinics, malls, schools, offices, etc. – you can buy without worries. The investment is safe. Put it out for rent and you can pay off the mortgage from the rent money. You can move in after retirement or put it up for sale for a value much higher than the value you bought it for.

Do not have to move again
When you buy property, you don’t have to think about relocating later. Rent rates go high with property prices. So if you’ve lived on rent, you never know when the owner asks you to move out. E.g. if you have been paying $500 rent for the last 5 years, a new tenant can pay the owner $1000 today for the same place. Most owners cash on this, and can ask you to find a new arrangement. This can have a drastic impact on your savings. So invest in property today to prevent such a financial setback tomorrow at the time of retirement.

Asset for your heirs
We’ve all heard of people inheriting property from their grandparents, parents, ancestors, etc. A property that cost $18,000 back in the days may be worth $144,000 today. If you buy a property today, you can pass it down to your family. The property will be worth a lot more tomorrow than it is today. It can turn out to be a great present that is valuable and important.

Investing in real estate is a definite and safe investment that brings good returns and profits in the long run. As you near retirement, the property value will increase and will add a thick cushion to your savings.

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