Real estate is a particularly suitable investment for the preparation of retirement. Long-term investment, with limited risks, if carefully selected, real estate is nevertheless a significant investment. Retirement compensation is increasingly uncertain and requires us to build a solid and rewarding heritage to calmly consider our retirement years.
- Have a principal residence:
Being a homeowner at retirement allows, first of all, to prepare for retirement and greatly reduce household expenses at a time of declining income, but also to consider the various possibilities that will follow. Being a homeowner makes it possible to be protected from certain, in particular, the expenses related to renting. The ideal is to become the owner of your home a few years before retirement and to have finished repayment of the loan related thereto.
- Investing with Retirement Savings Capital:
Capital from retirement savings, life insurance for example can allow a new rental property investment. Different tax systems can also support rents collected to repay all or part of the loan needed for the acquisition.
- Rent real estate property as soon as possible:
Because of the uncertainty of retirement benefits, it is absolutely necessary to question the most effective means of dealing with possible lack or insufficiency of income. The most effective way is to rent real estate to own a principal residence and to have another property put on rent allows having a complimentary monthly income. The cost of housing occupies an important place in the budget of a household, to be the full owner at the time of the retirement makes it possible to remove the load of rent and a loan.
- Resell a secondary property:
The sale of real estate helps bridge the income gap created by retirement. This formula requires a management rigor not to squander the capital in a short time.
- Rent a room at home:
Providing the contribution of a hundred dollars per month, renting a room within the main residence, whether apartment or house, is a solution. It depends on the amount of additional income needed, the area in which the property is located but also the area available for rent within the main residence. This solution has the merit of being simple and not dispossesses the retired owner of his assets. Income from renting part of his principal residence is exempt from income tax, provided that the rented room is the tenant’s principal residence and certain rent ceilings are respected.