If you are considering retirement but want to still have a steady stream of income after retirement, you may want to consider investing in a rental property.
Rental income provides retirees with income that is more predictable than social security income and retirement fund income, which can vary greatly. Rental prices also tend to be more stable than the stock market so you won't have to worry about losing money each time the market fluctuates.
Renting out a property may also provide significant tax benefits for retirees who are still earning income. If you plan on retiring soon and don't want your income to drastically change at retirement, consider purchasing a rental property as an additional source of income after you retire.
How to Start Locating an Investment Property?
Start investigating properties that would work well as rental properties in areas where you might like to live once retired by using real estate websites such as Trulia or Zillow. You can enter details such as the size of your income, what you expect it to be, and other information into their calculators to help determine if a particular property is worth looking into further.
Once you find a few properties that could work as rental income sources, start investigating them more closely by visiting the local housing authority and county tax records for each of the addresses. This way you can see how much income they receive from renters and if there are any vacancies or maintenance issues with the units.
Investment Property in Southwest Florida
In Southwest Florida, there is a huge influx of visitors every season looking for places to rent and many people are looking for annual rentals as well. If you are interested in purchasing income property in this area or any other, contact a local real estate agent to help you find the right properties. Even if you don't plan on retiring for years, investing early can pay off down the road when you are closer to retirement.
Investing in income properties is a great way to add an income source during retirement, but you should also make sure you have any other income sources planned out before investing.
Remember that adding income through rental units doesn't necessarily mean that you will need less income from other sources once retired so don't get caught up in thinking about how much income you will have once you invest in income properties without considering your income needs beforehand.
As with all investments, it's important to thoroughly research what income property opportunities are available and how they could fit into your retirement income portfolio.
Investing in rental properties can be a great way to bring in extra income during retirement but should not be the only way that you are planning on bringing money in after retiring. Remember that rental properties are just another investment so don't get caught up thinking about income from rental units instead of other potential income sources during retired life. Make sure you plan out all possible income sources before making any final decisions on investing for retirement.
If you do purchase a rental property, consider Reed Property Management to help manage your investment property so your time can be free to enjoy your retirement and is not taken up with the day-to-day tasks of managing a rental property by yourself.