Retirement is always viewed a time to rest and enjoy pension benefits but much more can be done with pension payments as it can be invested in profitable ventures. Real estate offers very good opportunities for investors to invest and watch their money grow and retirees can also benefit from these opportunities. Below are some reasons why retirees should invest their pension in real estate:
Lower Risks and Stable Prices
Real Estate Investment Trusts (REIT’s) offer a good way of investing in real estate and reaping the profits without having to go through the hassle involved in the real estate market. Money garnered from sale of REIT shares is invested in tangible real estate properties. They work like conventional stocks but they have less volatile price fluctuations and lower risks. Investors can also receive comparatively higher dividends because REITS are exempt from tax deductions.
Steady Income and Equity Growth
Real estate offers a good opportunity to earn steady income while watching the value of your property grow. Investing in rental property ensures that you receive sizeable amounts of money whenever tenants pay their rents. It is a good way of earning passive income while resting.
A Solid Asset Base
Inflation has a minimal impact on the value of real estate because there is a consistent demand for property as housing is a fundamental need. The value of stocks might plummet due to a market dip and this might take a long time to recover but the value of real estate properties even when they take a hit always bounce back. You can also use real estate properties as collateral to borrow funds for profitable investments.
Whether you are engaged in house flipping, REIT’s, buy and hold or long-term rental property, real estate is a wonderful place to invest in and watch your money grow.