If you’ve retired or started seriously planning for retirement, you may think it’s too late to do any worthwhile investing. After all, passive investing can take years, even decades, to really pay off. But that doesn’t mean you don’t have plenty to gain.
These are just a few of the compelling reasons to start investing in turnkey real estate as a retiree!
What is turnkey real estate investment, anyway?
If you’re new to the idea of investing in real estate, you made it to the right place. That said, you might not be familiar with the concept of “turnkey” real estate. Very simply, we’re referring to an investment strategy in which the owner/investor utilizes a turnkey provider to find, acquire, renovate, and manage move-in-ready rental properties.
In many cases, these properties may already be occupied and generating income. As a new investor, you don’t have to worry about choosing the right properties in the right markets, landlording, or otherwise maintaining your property. It’s all done for you by a property management team.
This model can vary from provider to provider, but that’s the overview.
5 Reasons to Invest in Turnkey Real Estate Through Retirement
Reason #1 – Earn Passive Income
One of the bigger incentives to invest in turnkey real estate is very simply the potential to earn passive income. Retirement can be wonderful, but it can also be filled with finite and uncertain finances. We’re living longer than ever, and we just don’t know what life will throw at us. These days, it isn’t enough to have a fat savings account – even if that were a possibility for all retirees!
So many people are working far past retirement age or picking up jobs in retirement because they can’t survive without that income.
The passive income from real estate – income that grows as you scale your portfolio – means that you can have the financial freedom and flexibility other retirement plans just don’t afford.
Reason #2 – Grow & Maintain Equity
If you’re in or near retirement, chances are you’ve paid off or are close to paying off your primary residence. Once upon a time, owning a home was seen as a big investment. You’d pay it off and be able to sell it for far more than you bought it. The problem with this is that your primary home isn’t likely to make the most of its equity. Sure, you may pay off your mortgage – but are you maintaining your value?
One of the benefits of investing in turnkey real estate is that your properties remain in tip-top condition. The maintenance is intentional, targeted, and preventative. You not only force appreciation via renovations, but you maintain that value over time without suddenly having to do a whole house overall when you’re ready to sell.
Reason #3 – You Don’t Have to Keep Up with Upkeep
The last thing you want in retirement is to take on a labor-intensive job. Owning rental real estate can be a massive undertaking if you go at it alone. Even if you’re having to find contractors, vendors, and managers on your own, it can take up a lot of your time, energy, and mental capacity. Turnkey real estate isn’t like that.
It’s called “passive investing” for a reason! While you won’t be totally hands-off, you’ll find that turnkey real estate allows you to earn income without getting your hands dirty. Instead, your time will be yours to spend doing what you love. And for a retiree, that’s the best news you can hear!
Reason #4 – Protect Your Retirement from Inflation
Even if you’re one of the lucky retirees that has substantial retirement savings, there’s always one big obstacle to consider: inflation. Considering that inflation over the past year has been higher than it’s been in almost forty years, that obstacle seems even more insurmountable. Inflation means that your savings aren’t worth as much now as you expected. It’ll eat away at the worth of your retirement funds.
Real estate is a counterpoint to this economic reality. Real estate is a hedge against inflation, period. Its value grows with – and even exceeds – inflation. It’s one way to preserve your wealth in trying economic times.
Reason #5 – Build Generational Wealth
Maybe you’re not sold on investing in real estate as a retiree. After all, the idea of taking on a new mortgage (or several) in your golden years isn’t exactly an attractive prospect! But think about this: owning real estate now means that you can pass your properties and the wealth they generate down to your children, and theirs.
And is there any more worthwhile endeavor than securing your family’s financial future?
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