There are many paths to take when growing the wealth needed for a comfortable retirement, and there’s no need to take just one. In fact, it’s probably not advisable.
Diversification is a prime principle for investing. Stocks and bonds and other fixed investments should be an important part of your retirement strategies, in varying measures as time moves along, and so should real estate.
Real estate investing is a vast realm of its own, offering the ability to be as hands-on or third-party as you wish, from fixing up a flip to socking away years of income from properties you don’t even own.
Here are six areas of investment, broad strokes of inspiration for you to consider as you paint your own picture of an affordable, enjoyable retirement. Choose well and do these right and you just might find your retirement date arrives sooner than you might have expected.
Image source: Getty Images.
Your own home
For most homeowners, their home is their largest investment. Downsizing that empty nest is a tried-and-true way that millions of folks have used to help fund their retirement. How much it helps depends on how much it’s worth, of course, and that depends on price appreciation over the years.
Home prices rose at a record pace during the past two years, but the history was already there. Recent research by Better Mortgage found that median home prices rose by 43% through the 1970s, for example. And from 1950 through 2020, price growth was about 326%. Prices are high now but the potential is there for them to go even higher, and you could profit nicely if you choose well and, to a degree, luckily.
Flip that home
Flipping homes has become a cultural phenomenon, the subject of many a blog and reality TV show. How much you make depends on how much of the work you can do yourself, how much you can sell it for, and — first of all — how much you spent for the place.
Rising home prices and record-low foreclosure rates have made finding bargains more difficult, especially in the nation’s hottest housing markets, but there’s still money to be made. In its most recent U.S. Home Flipping Report, ATTOM Data Solutions, a major cruncher of real estate numbers, says nearly 6% of all single-family and condo sales in the third quarter of 2021 were flips. They said the return on investment compared to the original purchase price averaged about 32%, yielding a typical profit of about $68,500.
Short-term rentals
Airbnb and Vrbo and the like are relatively new developments but there are millions of success …….
Source: https://www.fool.com/investing/2022/05/28/6-real-estate-investments-that-could-accelerate-yo/