Buying Real Estate for Retirement - Begin Today!
For decades, real estate investment has been a great asset for retirement with various ways to get started. It’s considered a safe haven for wealth since it offers capital appreciation and profitability at a low risk -- the perfect combination for a rock solid retirement plan.
Whether you plan to purchase your retirement dream home for yourself, or as a rental property for the additional income during retirement, investing in real estate is a great retirement strategy.
Why Invest in Real Estate for Your Retirement?
By investing in real estate you’ll be purchasing a home that will allow you to accumulate assets and receive additional income.
Real estate can play two roles in your retirement:
- Owning your primary residence when you retire means that you won’t have to worry about paying rent again.
- Having secondary real estate allows you to secure additional income, either in the form of temporary, permanent or vacation rentals that will deposit money on a monthly basis to your account, or in the form of capital if you decide to sell the property.
This all reads very well, but where do you begin? We’ve shared the following tips to get you started down the path that will help strengthen and secure your wealth.
Location, Location, Location! How to Choose the Best Geographical Area
In real estate, location is EVERYTHING. Or almost everything..
Some locations have higher profitability than others. To ensure the property you're planning to purchase has good capital gain potential, find a property located in a dynamic and attractive geographical area.
Tourist destinations like the smooth sand beaches of Mexico are an excellent option as they have a high capital gain and offer greater profitability due to the higher demand for rental properties. In Mexico, beach destinations attract tourists as well as expats from all over the world seeking the warm climate and laid-back, relaxed atmosphere.
The relevance of the location of the property you acquire gives potential to your investment and ensures your long-term retirement plan.
Visit Various Properties Before You Choose
If you fall in love with a property at first sight, that’s great! But we do recommend visiting and checking out numerous properties before making that decision.
Being selective allows you to compare advantages and identify characteristics of your future property that will add value in future years, align with your financial and wellbeing goals as well for your retirement plans.
Establish a reasonable rent amount
If you’re planning to invest in a property with the intention of renting, it’ll be important to begin considering the amount of rent you’ll need to collect from your property. Having this number in mind will help you project your return on investment and to choose the best property for your lifestyle needs.
To establish a rental income, take into account the property location, the land and the prices of the local real estate market. At Tao, we can help you determine the best rental prices based on the market value as well as case studies from our previous clients in the area.
Choose a Professional Real Estate Agent
Investing in real estate is a business with a lot of information and caveats to be aware of. To ensure that it’s the best option for your retirement plan, we highly recommend choosing a qualified real estate agent who is specialized in purchasing properties abroad. Surrounding yourself with real estate professionals who can give you the advice and guidance you need for your investment to succeed.
At TAO Mexico, we’d be happy to listen to your retirement goals and objectives and then give you advice concerning the real estate opportunities that fit your retirement plan.
We have properties for sale on the best beaches in the Riviera Maya, an investment hot spot in Mexico!
We offer direct financing for our clients that eliminates the need to review your credit history and allows you to quickly and easily obtain your dream home.
Contact us today to start an investment that will allow you the rewarding retirement you deserve.