Tuesday, October 7, 2014
Plans for retirement are important to start thinking about during your career. There are many ways to plan for retirement by investing your money. You can invest in stocks, bonds, mutual funds, or real estate. In recent years, more investors have been reaching for the real estate industry. Investors purchase homes and rent them to tenants, creating a stable form of income with little expenses.
Real estate isn’t always easy to invest in, but it is more stable. Stocks have the tendencies to rise and fall with investment trends over the course of a year; however, a rental property with a locked in lease generates predictable and stable income. This is ideal for risk adverse investors, or investors who are getting a later start in building their portfolio.
There are many opportunities to invest in real estate. The first of which being crowdfunding. This new concept is to split up the cost of a venture (or in our case, property) into sections and having different investors purchase a part of it.
A different way to invest in real estate is through a purchase and rental. In fact, now is a great time for investment in real estate. If you’re considering investing in real estate and need a mortgage to do so, interest rates have just dropped from a four month high, according to this Bloomberg article. With mortgages low, and the average cost of a rental home increasing, it seems as if now may be the perfect time to invest.
Once you have invested in real estate, the decision to manage the property is up to you. If you’re retired, you may find your properties easy to manage. Property management is rarely a full time occupation, but it can be daunting if you’re still in your career. If you chose to manage your own property and are in the last decade of your career, you may even find it overwhelming at first. If you’re unfamiliar with how to manage a property, there are companies like SI Real Estate to help with your maintenance and marketing needs. These are value added services for your portfolio that will help elongate the life of your investment to make sure you’re getting everything possible.
If you’re considering investing in the Tampa Bay area, feel free to contact SI Real Estate for more information and learn how we can assist you in the real estate process.