Tag: housing

With the current economic climate what it is, it’s understandable that you’d be worried about the viability of your retirement fund. There are a lot of great ways to beef up your retirement fund through side gigs, but if you want reliable income, real estate is going to be your best bet. Here are a few of the different ways in which you can utilize real estate value to help keep you in the black throughout your retirement.

Reverse Mortgages

First, it is important to understand that a reverse mortgage is not income. It’s more like a loan program for retirees. Much like a second mortgage, a reverse mortgage is based on the amount of equity you’ve built up in your home. Most people use it to either offset whatever payments they’re still making on the home or to beef up a retirement fund. How you use the money is up to you.

You can repay whenever you’re able–as long as you keep living in that home. If you move, you have to start paying back the loan. If you pass away before the loan is paid off, your heirs will inherit that loan. Current reverse mortgage statistics say that when this happens, the most popular option for heirs is to allow the lender to sell the home and send them a check for however much is left over after the loan has been repaid. Either way, you don’t have to worry about it.

Downsizing

If you no longer need the larger home you purchased to accommodate your growing family (who has long since moved out), sell your home and use the proceeds to either buy a new home or to pay for a rental. Smaller homes are cheaper and easier to maintain. You can also earn extra money buy selling off the stuff you won’t be moving to your new place.

In addition to the monetary benefits, small homes are better at maintaining their temperatures, which is good during the months with severe weather. They also usually stay cleaner because there is less space in which a mess can build up. Finally, they give you an excuse to get out of hosting every single holiday because you simply won’t have the space to accommodate everyone!

Continue reading Using Real Estate to Fund Your Retirement: Yes You Can

It’s no secret that the cost of renting a home is on the rise all over the country. When you hear news like this, the thought of becoming a landlord yourself can seem like an easy way to make a consistent income on the side. Here are some of the pros and cons of the situation, so you can figure out if this is the right business venture for you.

Can You Spare the Time

While being a landlord may seem like a great way to make passive income on the side, it’s not without its share of downsides. Not only can the additional tax issues take their toll, simply finding a property in a suitable location can also be extremely time-consuming. Likewise, it’s worth spending the extra time necessary to properly vet any potential tenants. You need to ensure you find people who’ll treat the property as they would their own home.

Of course, in the vast majority of cases, you’ll be able to hire a third-party to take care of any issues. This could end up eating a significant portion of your profits, though, so you should consider early on how much time you’ll be able to devote to this new project. You may even enjoy the extra responsibilities the job demands, whether it’s fixing a leaking faucet or putting the finishing touches on any outstanding contracts.
Continue reading Is Becoming a Landlord Right for You?