Real Estate investment is one of the most reliable paths to retirement. Commercial real estate can create a reliable, secure income for many years while growing the value of your investment.
As the real estate market crash enters its fourth year many people have given up on real estate investment as a pathway to retirement. While it is true that you need to know what you’re doing and that you need to be more cautious than ever, it is not true that real estate no longer makes sense as an investment. (too learn more about the roots of real estate booms and busts in the U.S. read: https://www.area-info.net/articles/show.php?cty=Salt%20Lake%20City&st=Utah&article_id=985&t=The_Bankers_Beast_From_1913)
As has long been said, “They ain’t makin’ any more of it.” It is a finite resource. It is especially finite in the West where government has taken over ownership of as much as 70% of the land in some states (regardless of their lack of Constitutional authority to do so). As less and less land is available for private use, private land becomes more and more rare. Rarity contributes to an escalation in value relative to the dollar. They ain’t makin’ any more land, but they sure are makin’ more people. You can be certain too that government will continue to find reasons to confiscate more and more private land from people. There is a very complex and sophisticated plan to do this that has been in operation for many years. It’s encouraged by the United Nations in order to protect the environment. However, they may simply wish to gain ownership, power, and control, and to excuse their power grab as necessary to protect the environment from people. (for information relating to a portion of these nefarious international plans read: https://www.area-info.net/articles/show.php?cty=Logan&st=Utah&article_id=826&t=Agenda_21,_Iclei_And_Your_Community)
While some of the raw land markets, some commercial real estate markets, and most of the residential real estate markets are still floundering, there are other real estate markets that are doing well. For instance, multi-family investments still provide a good income for their owners (whether that be the bank, the insurance company or other real estate investors). The multi-family market is actually heating up as people turn to apartment living as they escape the declining residential real estate market. Farmland is another area of investment that has seen improvement over the last few years as food prices soared. Food prices are expected to continue to escalate as the dollar dies. This trend will continue to drive the trend towards increasing prices for farmland.
Most of the things you know about real estate investment are still true. For instance:
1) Location, location, location is still important and always will be.
2) You make money when you buy, while you own, and when you sell if you do it right.
3) Real estate, when purchased correctly, can provide a hedge against inflation, leverage, cash flow, tax shelter, and even some appreciation (multi-family properties and farm land are two examples of real estate investments that have continued to appreciate in some markets).
4) Tenants will help to pay off the mortgage and build your equity over time.
Of course, you need to study and understand economics, real estate investment theory, the local and national real estate markets, finance, the law, and real estate management principals in order to become a qualified investor.
First do your homework when looking at an investment. Be certain you know all the costs associated with a given property (verify this with documentation). Start small, be cautious, study the market you are working in, limit your risk, invest in the markets that do well in times of economic chaos such as we are living in today, and then make an investment. There is still a reliable income to be earned from the right income producing properties. It can be more reliable than the stock market. Bricks and mortar and land carry more intrinsic value than bonds. Historically,in times of high monetary inflation, certain areas of the real estate market (such as multi-family and farm land) do well.
Investing in stocks, real estate, and precious metals is risky and could result in losing money. I am offering ideas for your consideration and education. I am not offering financial advice. Please do your own due diligence. I am not an investment adviser. Precious metals is not for everyone. I promote precious metals through American Gold Reserve. You should do your own due diligence when making investment decisions of any kind. You should consult your own financial advisers before making any investment decision. I make no guarantees that by following any advice or suggestion I might make that you will realize any return. Beware, all commodity markets and other markets carry risk of loss.