Your retirement may be a long way off, but if you’ve yet to start planning, you could find yourself in a financial bind. According to Realty Biz News, multiple streams of income are important if you’re seeking to retire comfortably. One of the top ways to produce a steady income throughout your golden years? Real estate investing. Here, some tips for buying and owning investment property.
Conduct research and attend informative seminars to avoid making a risky investment. Second, be careful about assuming a mortgage if your finances can’t handle it or taking out a mortgage thinking you can refinance for better terms later. And, before you apply for a home loan, be sure to know where your credit stands so you can determine if you’re able to qualify. You also might want to consider hiring a professional property manager.
Choose properties that will maintain or increase in value
Since various properties can be expected to maintain or increase their value over time, regardless of the value of a currency, it may be more worthwhile to invest in those as opposed to assets that may depreciate faster.
Make sure there is a positive income stream
If you’re buying and then renting out a house, make sure the rent will cover more than your expenses to ensure you’ll have some income.
Take advantage of tax deductions
According to the Internal Revenue Service, some types of property — such as buildings — can be reported on your tax return if they’ve been used for business or the production of income.
Factor in improvement costs
This could mean having to replace outdated kitchen and bath fixtures, repair floors or installing attractive features such as a washer and dryer.
Be wary of tenants
Choose wisely. Tenants sometimes can be a headache and a lot of work, especially if they fail to make their payments on time, become unresponsive or leave your property in poor condition.
If you’re up to the task, real estate is a terrific asset to have in retirement. Remember to do thorough research before you buy anything, and consider hiring an inspector to identify any potential problems with the roof, foundation or structure of the property you’re considering.