Are you thinking of quitting your 9-to-5 job? Are you tired of having to constantly answer your boss’ calls? Tired of doing reports and presenting them to your employers? We all know that feeling, but unfortunately, we aren’t all born with a silver spoon in our mouths. For most of us, the hustle is the name of the game. But you won’t need to hustle until your retirement if you only know how to invest in real estate.
If there’s a piece of land for sale in Melbourne’s west, you might want to consider investing your money in it. Wherever you go, real estate is the real deal. It’s an investment that will only improve over time, and it will even pay off its mortgage.
Here are the reasons investing in real estate properties is the wisest decision that you can make for your retirement:
Rental properties are a source of steady cash flow. Since many young entrepreneurs are hoping to make their marks, rental properties are on the rise. Even after all the bills and expenses have been paid, there will still be extra money left for your personal monthly expenses or your savings. This monthly income is mostly passive. You don’t have to work for it. The money goes into your pocket simply because you have a property that you can rent out.
Some people are afraid to apply for a loan to purchase a real estate property primarily because of the down payment and monthly dues. But imagine if you can rent out the property to tenants. They are essentially paying for the mortgage that in the end will clear you from debts. If you have a mortgage worth $25,000, that can significantly go down to $20,000 in just one year because of the rental fees coming from the property. By the second year, you are free of a portion of the $25,000 loan. Give it five more years, and the mortgage will have been paid off. You will get to keep the property and the rent coming from it.
It’s not rocket science to know that the value of real estate properties goes up over time. Yes, markets tend to crash, and there are economic recessions in the future. But after the waves have settled, the value of real estate properties will be the first one to go up. It will continue to do so in 20, 30, or 50 years. Everything will be worth far more than what you’re spending for them now.
The reason your job gets tiresome is that you are answerable to your boss all the time. Wouldn’t you want to take control of your cash flow? If there’s a sudden drop in rental fees, you’ll have the power to make adjustments. You are in complete control of your property and your financial situation.
But before investing your hard-earned money into real estate, take a look at your financial capabilities first. Take into account any eventualities where you might need to spend on your property. You need an emergency fund so that you won’t have to deplete your savings.