“Don’t put all of your eggs in one basket,” they say. We have all heard that diversifying your investment portfolio is crucial. The truth is – adding in real estate to that retirement plan can change your life and enhance goal outcomes.
Something as simple as buying a home and living in it for only 5-10 years, can change the way you live in retirement. How you ask? After you move on from the initial home, you can convert it into a rental property which serves as one of your new income streams.
Buying a home, and having it appreciate, with an average of 3% over the years (currently, we are experiencing closer to 7% appreciation), can easily turn in to hundreds of thousands of dollars after 15-30 years. It’s after this length of time that you will typically own the home free-and-clear, where you can really take advantage of the income benefits because your debt has been reduced drastically. It’s important to note that you also do not need a lot of money to put as a downpayment for this plan to be effective.
Are you interested in learning more? Send Lauren an email.