It’s smart to prepare for retirement early. If your goals are to build wealth and security in advance of your golden years, real estate investments can help you get there.
Whether retirement is imminent or still a decade or more down the road, it’s not a bad idea to start looking for an investment property so you can set the stage for comfort and financial security. If you already own an investment property, it’s time to think about growing your portfolio. Renting out a home now and once you’ve retired can provide unparalleled financial security.
The market is pretty hot. It’s tempting to sell and cash out right now while home values are higher than they’ve been in a while. Holding onto that property for later might make more financial sense, however.
Benefits to Owning Antioch Rental Property
Here are some of the best reasons to invest in rental property now so you can have a financially secure retirement later.
- Consistent and Recurring Rental Income
When you can keep your Antioch rental property occupied with well-qualified residents, you can count on short-term rental income that starts immediately. As soon as you place a resident, you can expect a rental payment every month. That’s going to contribute to the mortgage and the other expenses associated with your investment property. As you pay down the loan, increase rent, and make improvements to the property, you’ll find that you begin to earn more and more each month that you have the property.
- Long Term Appreciation
Antioch real estate is valuable. You may not have positive cash flow for the first couple of years – but that’s okay. You’re still earning money and establishing a foundation upon which you can build wealth. As your real estate value increases and your residents continue paying down your mortgage, you’re earning more equity and gathering appreciation.
- Tax Benefits with Rental Homes
When you rent out an Antioch property, you are in a strong tax position. You’ll enjoy several tax breaks that will allow you to reduce your overall tax exposure. Rental property owners can deduct the depreciation on their homes as well as expenses related to maintaining the property and accessing professional services to rent it out. That means your property management fee is tax-deductible, and so is any money you spend on accounting, legal fees, or insurance consultations.
Financing Your Real Estate Investment
Financing a real estate investment requires significant capital.
Fortunately, there are various options available, including conventional mortgages, private loans, and hard money loans. With interest rates where they are now, paying in cash isn’t a terrible idea if you happen to have liquid assets.
It is important to choose the right financing option based on the investment strategy, property type, and risk tolerance. Down payments and closing costs should also be considered while financing a property. It is advisable to work with a reputable lender who understands the real estate market and provides financing solutions suited to individual needs. The way you finance your investments will impact your retirement strategy, and you need some expert help.
Antioch Property Management Can Help
Speaking of expert help, make sure you partner with an Antioch property management team as soon as you decide to invest. As you’re thinking about retirement, you’re likely not too interested in being a hands-on landlord. We don’t blame you.
Hire a professional Antioch property manager to lease and manage the home for you. You don’t want to chase down rent payments, fill vacancies, and manage maintenance. Instead, you can partner with a management company to price your rental home, prepare it for the market, find a great resident, and take care of any routine or emergency maintenance issues. This makes your investment process easier and it allows for a more profitable, relaxing retirement later on.
We’d love to help. Contact us at PURE Property Management when you’re ready to talk about investing in rental property.
