When you think about your retirement, are you counting on your investment portfolio to provide you the income you will need to support your lifestyle? Do you feel confident that you'll be able to travel or do the things on your bucket list? The economic crisis of 2007-2009 raised awareness of the importance of careful retirement planning as millions of Americans lost nearly half of their nest egg.
Luckily, there is a path out of financial insecurity. Investing in real estate puts you in control of your retirement income. Of all the investments that are within the reach of the average individual, no other investment offers the full range of benefits that are available to real estate investors, especially when it comes to "risk versus return." Historically, real estate has shown consistent growth in value with little risk. Here are just a few reasons you may want to consider investing in real estate:
Short-term profits and long-term equity: In the short term, real estate can be a wonderful investment because of the money that can be made by flipping. Rental property, on the other hand, works well as a long-term purchase. Your tenant is the one who reduces your mortgage balance while your property continues to build equity.
Leverage: Most often you will be using borrowed funds to finance and accumulate real estate. You will be using other people's money to build your investment portfolio.
Positive Cash Flow: When you rent a property, anything remaining after the mortgage, taxes, insurance, and maintenance is taken care of, will be income in your pockets.
Wealth Building: Historically, real estate has increased in value so that when you go to sell, you will realize that appreciation. While it is possible to lose all of your money in in the markets, you will never lose all of your invested cash in a rental property.
Tax Deductions: While you need to keep your eye on current legislation with this one, there has always been some type of deductions for homeowners.
If you're considering investing real estate in either Iowa or Nebraska, we can help. Let's get together. We can help you achieve your retirement goals.