Monday, June 18, 2012

Real Estate Investment Tips for Retirement

If you are thinking of real estate investment in order to have a stable income after you retire, here are a few tips to keep in mind.
It's never too early. Ideally, you should start investing when you are in 30s. Real estate prices usually increase by five to 10% every year, so if you delay investing by a decade you will end up spending 30 to 50% more.
Consider your options. The price increase over a decade of a property in a remote area is estimated to range between two and five percent, while prices in a developed area are estimated to increase by 40 to 60%, so opt for the latter. Another option to consider is property in a gated community constructed by a reputable developer. Gated communities are considered to be a good option for investment as they have better returns in terms of rental and sale price.
Buy what you can sell fast. Although you may do real estate investment with the intention of holding on to the property for a long time, it is always better to purchase a property that will remain in demand and can be sold immediately in case of emergency. Residential townhouses and commercial retail and offices spaces in well maintained areas are a good choice.
Invest near your own home. Being physically close to your new property will prove to have several benefits. Not only will it give you a good idea of the property's value, living in proximity to the property will also make it easier to keep an eye on it, maintain it and monitor tenants if and when needed.
Construct and design sensibly. If you decide to build house, use good quality materials; they will last longer and therefore requires less maintenance. Try to divide the house into two portions; the rental yield will be seven to 10% more than an independent house. In this way you might achieve your best real estate investment purpose.