Seniors Real Estate investments
Real Estate is still a great investment. It combines intrinsic value-land they’re not making much more of it, and leverage. While there is a bit of turmoil in the mortgage markets, you can still get a loan for investment property that will allow you to invest a fraction of the total worth of a property and control the entire appreciation and income.
The first profit in an investment is made at the purchase. Buying right is essential. Take your time, follow the “buying right” rules and negotiate your best deal.
What not to buy:
- Homes in a bad location.
- Homes in a bad school district.
- Homes that’s have negative cash flow.
- Homes that need major work. Anything but a little landscaping and painting and window covering is MAJOR!
- Homes that will be vacant for more than a month or two. At a good return on investment of, say 10%, one month’s vacancy represents nearly a year’s net income.
- Homes more than a 45 minute drive from your residence. The prospect of driving a half a day and getting any painting done is NOT a good “senior moment.”
- Homes where the market will take too long to rebound. We’re not getting any younger!
If selling your long term family home results in more cash equity than you need to re-invest in a new residence (or 2), real estate represents a great opportunity for that cash to continue to grow. Buy right, rent judiciously and sell on the next up market represents a great strategy for an active, engaged and savvy senior.
