Planning to Retire Early? Here are some of the Pointers to Guide You for Optimum Rental Investment Profit
Anyone heading into retirement must focus in owning a fully paid-off home. It is your only asset that is not included on your test for a part or full age pension and your only investment that is free of the capital gains tax when you decide to sell it. Your family home will be your shaping strategy and solution to have a more comfortable retirement. It is highly important most especially now that retirees will have to face age pension cuts that will begin on January 2017.
For those who are planning to retire early, making sure that they, at least, own a property to jump start their plans of having a consistently income flow. Retire early investing in rental properties is the sure way of many retirees to secure their retirement plans. A good retirement property will be helpful in providing soon-to-be retirees a stable income in a monthly basis.
For you guys and ladies in your early 20s and 30s I strongly recommend that you scoop up as many rental properties as you can. Don’t wait till your in your 40s or 50s to start investing. I bought my first property at age 23 and haven’t stopped since.
A stable income is important for a retiree. This will help them to account for their monthly expenses such as health care costs, utility bills and so much more. With the money that comes every month, this can be a great help in generating peace of mind for retirees that are hoping to have enjoyable years of being out of the workforce.
Retire early investing in rental properties probes to be one of the most reliable sources of income for many. However, there are still some of them that find rental property investment to be hard to maintain and an unsure investment. For future investors, here are some of the things that are best to consider for a successful property investment:
• Make sure to pay off the mortgages – assuming that you are still in the middle of paying off your property, paying it off will make your property more profitable than before. Without having to pay your mortgages very month allows you to have full access to your rental property income. Mortgages are the big factor when it comes to your income. It takes a chunk of your money and leaving you with almost nothing. For a more profitable property, make sure that you paid off your mortgages and you will be shocked to how much your profit will be.
• Hold your property for ten years and keep a good book along the way – in real estate, having good years and bad years are normal. Just like any other retirement investment strategy, you can never have just the good years in your business. In a ten year frame, you should be able to see:
o The trend of your real estate – cost, profit and prices.
o How your worst year was
o And how you will be able to come up with a solid solution that you can rely on.
- To have an exit strategy – this involves planning on who will take over on your properties when you pass. Assuming that your property is providing good profit, training someone who will take over on your properties is the best suitable way to ensure that your property will stay on its stage.