We have all been given the scare of our lifetime when recession hit a few years back. No one dared to invest in real estate as it has become a shaky and unstable investment. Values of homes may drop at any time and you will be left with a great liability instead of an investment. Now that the world has recovered to the economic trial that we have been in, the future of the real estate industry seems to be brighter than ever. Realestate if held for decades could be your own little oil well during retirement and help pay for higher medical bills, medications, make up for lost income and take the place of long term care insurance if either you or your spouse has a medical issue making you uninsurable. Even wealthy Americans might not be prepared for retirement and the potential long term care risk could have on their independence.
Experts recommend investing in real estate to help fund your retirement now but before you pool all your money in this thriving industry, you may wish to know what makes investing in real estate now is a good idea. Well, here are some great reasons:
1.)Low Mortgage Interest Rates
After the recession and now that the economy is getting back in shape, the prices of mortgage rates are lower now more than ever. You must certainly take advantage of this as it may go up at anytime. If you have the money to invest now, then by all means, do so!
2.) High Amount of Foreclosures
When recession hit and the mortgage interest rates went down, the people went crazy in buying homes, even if they cannot afford it. Now that their mistake has caught up on them, most of their properties have been foreclosed and are now being sold at a price lower than its value. Now you can buy valuable properties without having to pay the price.
3.) Low Estate Prices
All over the world, the prices of real estate are quite cheap today. If you are planning to invest in real estate it is highly suggested that you choose a great location, such as the Boca Raton Real Estate. Also, make sure that you buy a great property at a reasonable price.
4.) Great Income Generating Opportunity
Whether you would live in your newly purchased house or not, it can certainly generate income for you. Since most people would prefer renting over owning a home, you will never run out of clients who wish to rent your property. You can use that extra income during retirement to help pay the assisted living facility bill if either you or your spouse develops Alzheimer’s. Alzheimer’s is a devestating disease and the State of Texas now has one of the highest Alzheimer’s rates in the country. Having a balanced portfolio could help level that risk.
5.) Real Estate is also a Great way to hedge your Long-Term Care risk.
Regardless if the economy is in a good condition or not, real estate is always a great investment. This is an investment that keeps on giving after decades. If there the best time to invest, it is now and you should not let go of such an amazing opportunity. An over looked benefit of own real-estate such as an investment property is the residual income it can bring you during retirement. The property typically is paid off well before you are retired so if either you or your spouse ever need long term care, the income can be used to pay the nursing home bill which can run $80,000 per year. Buying Long Term Care insurance in addition to owning the real-estate might be wise depending whether or not the property’s rental income is enough to pay for long term care bill. The Long Term Care Insurance can also help protect your real estate from the Medicaid Spend down requirements.
If you are now convinced that it is the time for you to invest in real estate to ensure a comfortable retirement, then it is recommended that you take a look at some of the best real estate deals out there that can generate that monthly cash you’ll need to pay the long term care insurance bill. Make sure that you do thorough research before shelling out money in your chosen real estate. In this way, you can make the most out of your investment and get one that cash-flows.