Friday, January 31, 2014

Investing in Property for Your Retirement

With the cost of living increasing, and investments having suffered extensively in the economic downturn, retirement can seem a daunting prospect. Wanting to get out of full time employment can mean having to turn to part time jobs in low paying positions, just to maintain a standard of living. Fortunately, by using your assets wisely, and investing in the property sector, you can retire and still make an income while keeping your own hours.

Release the Equity in Your Home – When children have flown the nest, the need for large houses with lots of rooms diminishes considerably. Downsizing is often confused with ‘settling for less’ in order to make ends meet, but in reality downsizing gains you far more than you lose. Take the time to find a property you really love in an area that makes you comfortable and happy. A smaller space with fewer rooms means less cleaning, less upkeep, and lower bills. Downsizing can really save money but more importantly, downsizing to a smaller property means you can free up the equity in your home. Start the process well before your intended retirement date and you are in the perfect position to wait out the market for a buyer who can offer you the best possible price.

Invest in a Second Property – Investing in property in a market where rentals are at a premium due to the need for large deposits that many first time buyers and young professionals do not have means you are able to capitalise on your money. Without diminishing your investment or being subject to financial attrition in the same way an annuity might, you can secure a monthly income that fluctuates over the years in line with the cost of living and inflation. Unlike pensions that pay out at a set yearly rate, losing value as years pass, a property investment stays in line with the market. The rent from a small flat is a monthly stipend that can easily match a part time wage, with a fraction of the work.

Let the Professionals Work for You – If you don’t fancy the upkeep and landlord duties involved in property management, there are plenty of places to turn for advice or simply to hand over the responsibilities in return for a small percentage of the monthly rental. Companies like Rylands Associates are experts in property management and can take care of everything for you if you decide to take a late life tour of the world, or simply choose to relax and enjoy the comforts of home.

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