Men and women between 20 and 30 years old may wonder whether it is a wise idea to consider real estate as a retirement plan. To decide if housing is a viable source of income during your retirement period, you should seek to understand the meaning of wealth first.
Wealth is not lack of worries about money; Wealth equals stock portfolio and real tangible assets. Real estate is a tangible asset. A person in San Marcos, TX, would call a house real, touchable, or physical property and could potentially see a lot of benefits after putting money in real estate.
Real estate can guarantee a healthy post-work life. As soon you attain 20 years and begin to gain income, you should start thinking about property searches and your comfort as a senior citizen. There are many reasons to motivate you to buy a home instead of living in rental houses up to your retirement life.
The rental property that costs $1,000 today might require not less than $5,000 after 25 years. The monthly rent for a townhouse is not going to be the same in ten years. Inflation is a factor quite difficult to control. You would better benefit from the inflation factors rather than being a victim of rental price increases. It pays to prepare for the time your income might decline, stop growing, or disappear. Life might be less comfortable if you still had to pay rent at 55 years.
The U.S. government considers real estate to be an essential component of the American dream. Any single person who buys a home can get a $250,000 tax waiver while a couples’ tax waiver is $500,000.
Unlike movable assets, rental property is easier to administer. Houses will only require you to get good tenants and maintenance after a long while. Stock market shares are variable and will need constant monitoring. Any other type of business, such as fast moving consumer goods, can drain you emotionally and physically because of your daily supervision role.
Housing is perhaps the only investment that gives entrepreneurs a constant return for 12 months.
Living in your home provides an extra sense of security to the family since there is never the fear of eviction. You can also have long-term plans on family affairs and the education of your children because you have the full control over your property.
You possibly have heard of grandparents or parents who bought houses at $30,000 that are worth millions of dollars today. The real estate you buy during your active age is all yours to enjoy throughout life. Your children will have an advantageous beginning in life, having benefited from a generational property transfer. After all, every parent wishes the best for the children in life always.
If you buy a house through fixed rate mortgage programs, you will continue paying a constant monthly deduction for 10 or 15 years. The debt will become smaller as your net worth increases. There is also the satisfaction that comes with living a homeowner as you don’t have to keep moving to avoid increasing rental prices.
If you’d like more information about the benefits of becoming a homeowner, contact The Damron Group located in San Marcos, TX.
For over 30 years, the Damron name has represented the highest level of customer care, area expertise, and industry knowledge in the San Marcos, Texas real estate market.