A sobering report by Forbes online recently reminded today’s fifty-somethings that planning for retirement isn’t what it used to be. Since pension funds in some states are collapsing and the future of Social Security is questionable, these “pre-retirees” who haven’t planned for retirement may find options limited in a rapidly changing financial landscape. But the good news is that for first responders and other public service employees, it’s never too late to invest in income property — even if you’ve never invested in anything before.
Investing in income property is a long-term strategy. Properly done following Jason Hartman’s investing strategies, the income and tax deductions for property ownership can provide income for every year of the investment. That income is derived from a combination of low-interest, fixed rate mortgages, tenant rents and tax breaks that offer some relief if a rental goes vacant for a period of time.
Although income property investing is a long-term proposition, that doesn’t mean that you must wait years to see a return on the investment – a possibility that can deter retirees who want, or need, a relatively quick return. With properties ready to be rented or renters already in place, the rent checks that cover your mortgage and more are available right away.
Income property ownership can require an investment of time and money. Regardless of how hands-on or hands-off you choose to be in managing your properties, you can still claim the tax deductions associated with managing and maintaining the property, and your investment business doesn’t require a self-employment deduction. In retirement, you’re free to devote as much 0r as little time and effort as you choose to managing your investments. You can engage a property manager or handle all aspects of the project yourself.
Jason Hartman advises investing in diverse markets as a protection against a collapse in any one area. By purchasing as many properties as you can in various areas, you can establish a steady income stream that holds up even if one property goes through an extended period of vacancy. Prudent investing in the right properties keeps the income coming for the life of the investment.
Income property investments benefit not just you, but your heirs. The properties you purchase can be maintained for income as long as there are tenants willing to pay the rent you’re asking. And unlike many other investments, housing is a universal need that isn’t likely to vanish – people always need a place to live.
Investing in income property is not just for the young. Whether you’ve been saving for retirement all along, or you’ve just learned that the pension plan you counted on is vulnerable to cutbacks, the years just before and after retirement can be the best time to use Jason Hartman’s guidelines to launch a new life as an investor in rental real estate. (Top image: Flickr/poweron)
The Heroic Investing Team