Buying real estate has a different mean altogether for retirees. They are presently experiencing a phase in life when their needs have changed, and ambitions have diminished. Besides, they are standing at a point in life when they cannot afford to incur losses and setbacks. Therefore, safe investment is their primary requirement.
The best way to assess any investment opportunity is to look at the property specific answers to the following questions –
- How good is it as an investment vehicle?
- How much income can it provide?
- What is the kind of appreciation that you can expect?
- Does it provide you protection against inflation?
- What is the reversibility quotient of the investment?
While a lot of the real estate properties will easily match the criteria set. Besides, it must live up to the standards expected, the scenario is a little different for retirees. They are more selective than their younger counterparts. When you are young and full of vigor, you can easily look at investments that require some commitment from your end as well. For instance, if you buy farm land or apartments that you wish to give away for rent, these are good options for you if you can make visits to the farm land to ensure that it is being properly maintained or keep a check on the tenants. However, as you grow old and reach your retirement age, you begin to value comfort more than money. Therefore, the idea of passive investment allures you more than investments that require you to run around.
However, this does not mean that retirees cannot buy properties for appreciation. They certainly can! However, the amount of effort required is much more. Real estate is one of the most thriving businesses. However, it requires persistence and patience from your end. Besides, it may also demand a good amount of hard work from the owner. As the owner, you may be expected to do a little running around for maintaining and improving your property to ensure that it continues to seem like a good investment to potential buyers. Retirement is a time when most people think of leading a relaxed life in a comfortable place. The days of hard work are gone, and this is not a time for them to look at ‘get rich’ schemes. Instead, they are looking for ‘get comfortable’ schemes.
Reverse mortgages are considered a good investment area by many retirees. Unfortunately, the investment vehicle is not as rosy as it is portrayed to be. Retirement is a time when your yield is low and investing environment is turbulent. However, there are several actionable ideas that can be used for getting finances back on track post retirement. Real estate also offers a range of opportunities to retirees for solving the same purpose. However, considering the personal, professional and financial situation of a retiree, the selection criteria are stricter. As a result, the number of options is rather few. However, if well-informed and wise decisions are made, there is no reason why real investment can go wrong for even the retirees.