If you're hoping to retire early, you'll need to make smart investments. Investing in real estate is an option that you should seriously consider
Real estate investing is one of the few investment tools that has been around for a long time. The existence of vast tracts of land from ancient times to the present has been associated with power and supremacy. In an age where there are endless avenues to invest like mutual funds, gold, bitcoin, ETFs, debt funds, etc., real estate remains a reliable and proven investment option.
Here's how investing in real estate can put you on a solid financial footing and help you retire early.
When you are planning to retire early, you need to start planning early in your life. Once you start earning, you have to start investing. If you are just starting a job, look for avenues of real estate investment nearby and invest as soon as you get the right amount, said Asma Javid, Vice President of NCR Delhi-based real estate firm. He added that the responsibilities at this time are almost minimal and there are no family duties and you are at your best.
When you make a real estate investment early in your life, decide what type of property you want to invest in. Given the long-term horizon and the potential for appreciation, it would be wise to invest in land parcel. Since the value of the land does not decrease, there will be no maintenance fee. This translates to a lower payload and a higher rated potential. If you plan to retire at the age of 40, the piece of land you purchased at a young age will be an asset when you retire.
Lower your debts
When you decide to retire early, there are some tough financial decisions that you have to make early in your life.
Suren Goyal, partner at RPS Group, said that instead of getting too many credit cards and spending lavishly by getting too many personal loans, it would be better to save money and invest in a property.
Investing in real estate does not always mean investing in a plot of land or an apartment. “With the introduction of innovative real estate tools like REITs and micro-investment options, one can start with a small amount and grow it as a Systematic Investment Plan (SIP),” said Goyal.
The more rental properties you have, the more convenient it is for you to retire early. As your income increases, you need to invest in real estate with high rental yield.
Anurag Goel, Director of Goel Ganga Developments, said when deciding rental income properties, having a good location is of paramount importance.
“A large investment in a location that is remote and less likely to be developed will generate less rental income than any well-connected location. Since you have decided to retire early, a number of rental properties will help you earn regular income after retirement. Do your research and be careful about emotional investing,” Joel said.
Improvise your investment
Despite a well-thought-out investment, sometimes a property may not be as profitable or profitable as it once seemed. In such cases, be prepared to sell the property, sometimes at a discount, and reinvest elsewhere. Being ready to improvise in your investment strategy will go a long way in planning for your early retirement income.
Early retirement requires an early start and effective planning and implementation. If done well, you are very likely to enjoy your early retirement with income from property.
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