Investment For Retirement :: Agent Training :: Retire Rich
Rental property investment is one of the ways to secure your retirement income.
Why?
It is because investing in rental property enables proactive employees to create an alternative source that comes handy especially after they are retired.
Think about it this way.
People go to work and work 8am to 5pm every day, 5 days per week because they are paid a salary.
If your employer stops paying you your salary (or owes you several months of unpaid salaries) you most likely will quit the job for a better job.
Therefore, earning a regular salary from a paid job is absolutely important to you and, indeed, everyone in paid employment.
However, every employer stops paying their employees salary when they retire. And that often leads to financial crisis for most retirees.
So, how do you ensure you do not become broke and miserable after retirement?
One way is through rental property investment.
Investing in rental property has three key benefits:
1. Rental properties are often high priced properties compared to land investments. Therefore, each rental property you own translate to owning a large sum of money stored up for retirement.
2. Rental real estate often deliver a steady cash flow month after month, year after year.
Therefore, if you take property investment seriously early in your career (and acquire a good number of rental properties while still in paid employment), the multiple rental properties you own could deliver enough cash for you every month to finance your retirement life.
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The third key benefit of rental property investment is the fact that investing in rental property helps YOU, the investor, to protect your investment capital against the adverse effect of inflation.
Inflation eats away at the value of money.
For example, most employees have being taught about the value of saving money for retirement. So, they save and save but do not invest the money in their retirement savings account in any meaningful business or real estate venture.
Guess what.
These employees are shocked when they discover 10 years after that the amount of money they have saved up in their retirement savings account can only buy about half of what it used to buy when they started saving.
What happened?
Inflation happened! Year on year inflation has eaten up half (or more than half) the value of their savings.
What if these employees are smart enough to invest the money in their retirement savings account in rental property investments?
Well, the growth in rental property values over time will more than cancel the inflation rate.
For example, the inflation rate in many countries is below 20 percent while it is possible to get 20 to 30 percent growth in the value of your real estate investment year on year.
Therefore, investing in rental property is the smart thing to do if you want to secure your retirement income against inflation and achieve financial independence after retirement.
Many seasoned real estate investors will tell you that they made a number of property investing mistakes when they started out. And those mistakes cost them a fortune.
In fact, many first time home buyers even lost 100 percent of their first real estate investment because they engaged the services of a quack real estate agent or went through the purchase process without engaging the services of a seasoned real estate consultant.
In certain cases, the loses incurred by newbie investors may not be as drastic as 100 percent loss of their real estate investment.
However, they may have invested in low yield rental property and the cumulative loss of a decade could be substantial.
Bottom line.
It is not sufficient to simply put your hard earned retirement savings in rental property investment.
You must investment in well-chosen investment property so as to earn the highest possible return on your investment.
Now the big question: How do you get the highest return on your real estate investment?
Read the article on investing in rental property for a concise explanation.
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