5 Reasons Residential Property makes A Great Retirement Investment
by Abdul Aziz Mondal Investing Published on: 19 February 2019 Last Updated on: 24 February 2020
People are often skeptical of investing in upscale areas thinking about a number of factors- price, maintenance, evaluation and investment considerations. However, experts are of the opinion that investing in residential properties in upscale and luxurious neighborhoods is always a great decision to take. If we talk about some of the best neighborhoods in Dubai, we have some luxurious options that you can consider. Have you ever considered investing in amazing areas, such as the Dubai Creek Harbour or a luxury apartment in Port de la Mer by Meraas or Madinat Jumeirah Living? If you are planning to retire but still manage to get a profitable income, real estate probably makes a perfect early retirement tool for you. The rental business is so wide, profit-making and easy to understand, that anyone with a decent budget could live on it.
5 Reasons Residential Property makes A Great Retirement Investment:
We are here to give you some reasons which make residential property makes a great retirement investment:
1. Monthly Income:
The first benefit of investing in real estate is income. Investing in residential properties often leads to great returns on your investment. If you decide to invest, you not only gain by your property getting a substantial raise in terms of evaluation in the future, but you also stand to gain from rent, if you decide to rent out the property. By investing in the right markets, you could actually get income returns of approximately 5 to 10 percent with rental properties. With time and with long-term advantage the incomes could even double up, from 10 to 20 percent, or more.
2. Inflation-Proof Investment:
One of the best factors of rental property income is its capability to keep pace with inflation, which allows investors to make income plans to support them with the current rates and will probably continue to support them at the same level in years to come. In comparison to real estate, almost all other investment opportunities are significantly affected by recession, inflation and other instabilities in the financial market. Real estate is the only industry in the world that is not affected by recession or inflation. This only means that your income should grow at the same rate than inflation, or even higher.
3. You’re In Control:
As an investor and owner, you are allowed to do plenty of things to improve your property just to increase your wealth and rent rate. A secure, well-maintained property significantly increases in valuation year on year than a badly managed property. A well-managed property will give almost total control of your income for years. If you need help with managing all your properties, these Santa Barbara property managers have some great tips and advise how to do this.
In terms of a secure investment, and in terms of rent that you will collect over a period, you will be at peace in terms of using your property as a model of revenue generation as well. As a retired person, you get a lot of control of your time and why not spend it on improving your monthly and annual income.
4. Tax Benefits:
Investing in residential property also translates into you massively saving in terms of taxes. Governments all over the world want their citizens to invest, and the government, in terms of giving its citizens, huge tax benefits, supports any form of investment. A lot of people are unaware of the fact that rental income is not subject to taxes, and goes directly to your benefit.
5. Real State Simplicity:
Real estate is a simple, intuitive and understandable business. It also forms part of tangible assets or immovable assets. It is also an asset that would not go out of style or loses its value with changes in technological advancements. You can rest assured that real estate does not get affected by changes in other sectors.
The best thing about investing in real estate is that land continues to be a minimum quantity. People will always live in homes, so there is nothing wrong with depending on real estate as a safe retirement investment. The question then arises is this- should we spend or invest in a big luxury apartment in the Dubai Creek Harbour or CityWalk Dubai? Yes! The real estate market is one of the best profitable retirement businesses right now, and as mentioned before, real estate does not go out of style.
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