5 Reasons To Add Rental Properties To Your Retirement Plan

Does the thought of having enough money saved up for your retirement years weigh on your mind? Well it should, no matter how old you are now.

It’s a fact that people are living longer than ever before. And there is a strong possibility that you could outlive your retirement funds.

So what can you do to ensure you can live the lifestyle you’re used to when you grow older? Think about how having rental properties can give you the continual flow of income you will need.

Here are 5 reasons to consider adding rental properties to your retirement portfolio.

Reason #1: Rents almost always go up over time.

As inflation rises, rental rates usually keep up with the economy. With so many people renting these days, you could set yourself up to always have positive cash flow.

Reason #2: The IRS gives rental property owners special tax deductions.

They allow you to depreciate the building portion of your property, which will reduce the taxes you pay.

Reason #3: You can always sell this asset for quick cash.

Single family homes are typically easier to sell than other types of properties. So when you’re in the market for a rental, choose what you purchase wisely.

Reason #4: Buying a rental property can be easy.

To own an asset that is worth around $500,000, you don’t need to have all of the cash up front. In fact, all you need is a down payment to get started.

Reason #5: Your renters will pay off your mortgage over time.

So if you ever need a large sum of money, you can borrow off of the property’s equity without having to sell off the house. You can also use the rent payments from your tenants to add to mortgage payments you are making to pay off your mortgage faster and save a boatload of interest.

So if you’re worried about what you’ll do for money when you retire, and what kind of quality of life and freedom you’ll have, now is a great time to consider picking up some rentals.

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