5 Ways Real Estate Can Help You In Post-Retirement Earnings
As mentioned above, investing in real estate can help you secure passive income after you retire. Here are five ways to go about it, suggests Mr. Goyal:
Investing in residential rental properties such as apartments or single family homes is perhaps the most reliable way of earning passive income. If located in high-demand rental markets, these properties are guaranteed to be rented, bringing in regular income. Moreover, these investments are passive if a property manager is hired.
Purchase properties in areas where the rental market is strong, for instance, near universities or business centers. These types of areas have a consistent turnover of tenants which guarantees earnings.
2. REITs Or Real Estate Investment Trusts
REITs are a good solution for retirees wishing to invest in real estate professionally without the hassle of dealing with a tenant as there are no management concerns.
These trusts create and manage malls, office buildings, and healthcare centers to generate income. The earnings from these investments are paid out as dividends.
3. Vacation Rentals
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Businesses like Airbnb have changed the landscape of leasing short-term properties. If you own a property in a prime tourist location, listing it as a vacation rental may earn you greater profits than leasing it out the normal way. This, however, needs a lot of active involvement or hiring a rental management company, points out Mr. Goyal.
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4. Commercial Real Estate for Higher Returns
Retail, offices, and warehousing units yield good revenue when rented on multi-year leases. A significant number of companies will readily lease particular spaces for a number of years, thus guaranteeing consistent income. Although this strategy requires a big amount of money initially, the profits usually are much greats than owning residential buildings, states Mr. Goyal.
Echoing this, Anurag Goel, Director, ofGoel GangaDevelopments, adds, “I think retirees can benefit from owning commercial property, especially with long-term leases. You are kind of guaranteed income. These types of investments are good to have in times of recession, specifically in vital areas like healthcare, logistics, and self-storage.”
5. Real Estate Crowdfunding
Investors who like the idea of separation can use the crowdfunding approach to real estate and invest in several properties with comparatively small amounts of money. With these services, users become the sole owner of a property and, without any management obligations, receive a share of the passive income, along with facilitations provided by the platform.
“It is important to relax and enjoy financial freedom during retirement. Investing in real estate, through direct ownership, REITs, or commercial properties, can generate income well into the golden years. The primary components are balancing investments thoughtfully together with their corresponding diversification, risk tolerance levels, as well as financial targets,” wraps up Mr. Manoj Goyal.
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