Owning rental real estate can be a good idea, no matter what age you are. But owning real estate in retirement can be extra advantageous because it can help you diversify your retirement income while also padding your retirement savings.
If you’re looking for ways to expand your senior income, here are three reasons why owning real estate in retirement could be a good move for you.
1. Rental income
Rental income is the most obvious benefit of owning real estate. You, as the landlord, get a paycheck each month from the tenant.
2. Price appreciation
Home prices aren’t guaranteed to rise, but historically speaking, most homes appreciate or rise in value over time. Supply and demand in the given market or for the property features themselves will ultimately determine if the home rises in value or falls. Buying a rental property that appeals to a wide range of people in a high-demand neighborhood or real estate market increases your chances of benefiting from appreciation over the long haul.
3. It can be as passive or active as you want
A lot of people hear the word rental property and think of work. It’s true; there is a lot of active management that goes into owning rental property. But the good news is, it doesn’t have to be done by you.
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