Invest in your Future with Real Estate

Inflation has been a hot topic lately. With prices on the rise, it is nerve-racking to know how you’re going to prepare for the future.

What is inflation?

Inflation is the increase in the price of goods and services, or the decrease in purchase power a dollar has.

There are many factors that play into inflation and whatever the reason may be, the only control we have is to make sure we are prepared for our personal future retirement fund.

There are many ways to invest in your future. You can open up investment accounts like a high-yield savings account, 401ks, IRAs, and more. These are great ways to keep your money growing instead of sitting in your bank account. However, in the long run, they may not be the most effective way to maximize your retirement fund.

With the rate of inflation reaching historical highs and the stock market continuing to falter, holding your wealth in only equities may leave you disappointed in the long-term effects of inflation. For example, if an investment account has a 4% return for the year and inflation remains at its current rate of 8.5% (the highest it’s been since 1981) your portfolio won’t be much of an asset by the time you want to retire.

Adding passive real estate income to your retirement portfolio is a fantastic way to diversity your future and ensure that your retirement savings continue to grow.

Retiring with Real Estate

One of the best ways to maximize your retirement funds is by applying for a fixed-rate mortgage. When you buy a property on a fixed-rate mortgage, that means your monthly payment is based on the value of the home your originally purchased it for. If inflation rises and that home now costs $150,000 more than you bought it for, your payment will not change.

Did you know when you rent your home, you are only building someone else’ s equity?

A cost that increases with inflation, is rent. Over the past year alone, there has been a 30% increase in rent, in desirable cities. Since your mortgage is on a fixed-rate loan, your payments stay the same while creating more rental income with the rise in rents.

What if I don’t have time to manage a property?

Investing in real estate seems like the easiest plan until it comes time to manage and maintain the home. Between finding tenants, late-night maintenance emergencies, rent collection, and other necessary tasks to upkeep the property, investing in property can feel more of a burden than a relief. This is when property managers become a helping hand with your real estate investments.

Property managers are the middle man, or third party, between the property owner and tenant. Hiring a property manager means you can be hands-off while still funding your retirement. Check out The Benefits of Working with a Property Manager post to learn more about working with a property manager.

Learn more about FYVE’s property management services by CLICKING HERE!

It’s important to stay ahead of the game when it comes to your investments. Consider the effects inflation will have on your assets and protect your retirement funds. Consult with a licensed professional on how to invest in your future!

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