It can be challenging to explain to some people that the new car or the flat screen television set that they've been drooling over isn't going to improve their retirement, or their wealth, in any way, shape, or form. In fact, these kinds of purchases, when money is actually tight, can be detrimental to long-term financial health and well-being. Of course, wanting to impress friends at the next Super Bowl with that HD TV can be enticing, but if you want a strong retirement financially, then it would be more prudent to ask yourself whether or not the money would be better served in an investment property.
Millions of people own their homes and this is always going to be the first great step toward enjoying their golden years, and yet a large percentage of those homeowners fail to grasp the possibilities, and the potential, of owning investment properties. The first thought could be that they simply don't want to deal with the hassles and headaches that accompany owning an investment property, whether through tenants, upkeep and maintenance, or other factors. A second thought can often be associated with wanting to improve the conditions of their first property, their primary residence and therefore they spend any extra income they have at the end of the month making improvements to it.
Where true wealth lies
True wealth lies in investment properties. Real estate, in other words. Regardless of what has transpired in the past few years, with the loss of value in many markets, real estate has continued to be the most lucrative investment throughout recent history. The stock market, though it has seen spikes and drops throughout the past twenty years, hasn't performed nearly as well as the real estate market for overall wealth creation. Owning one single property can certainly do well to help boost one's bottom line and retirement fund, but when there is extra capital, then an investment property will mean that much more at the end of the day.
Why right now is the best time to get into property investing
With all of the dire news reports regarding a weak economy and stagnant housing and property market, it can be sometimes exceedingly difficult to convince would-be investors that this is the right time to get into it. The seasoned veterans know all-too-well that the time is ripe, but the job for real estate agents and mortgage brokers is trying to convince those that may have been thinking about it before the recession hit, or have been mulling it over in their mind for the past few months, or longer. As most of us are aware, real estate values have depressed significantly from their highs a few years ago, and with all of the foreclosures and short sales, it may seem as though the road to recovery might be a long way in the future, a distant idea. But because the values have checked back so significantly, that is the perfect reason why right now is the ideal time to take advantage of and get into property investing. Delving into property investing doesn't mean that one has to buy a nice second home, rent it out, and have to deal with the impending headaches that come along with tenants. One can simply buy into a home that needs work, make some repairs, improve the landscaping or other features that appeal to the average homebuyer, and then resell when the market rebounds or when the time is right. Some may refer to this process as 'flipping', which has been blamed, in great part, for the housing crisis that has befallen us today. However, property investing is more than about 'flipping' houses; it's about carefully choosing the right properties to invest in, making any needed changes, and then waiting for the value to increase once more. Property investing shouldn't be thought of as something criminal or 'dirty', but as any other investment and with real estate, it is the one true constant that will boost retirement savings better than any other.
David Reinholtz is a professional Mortgage expert in Real Estate Industry. David is also a sales and marketing expert and trains professionals in every career field. David has personally trained tens of thousands of loan officers, mortgage brokers, real estate agents and individuals through The Close More University Seminar Series, LoanOfficerSchool.com Classes, Correspondence and On Line Learning, and countless private engagements and training events throughout the country.
David is the Founder and CEO of LoanOfficerSchool.com, an approved education provider for The Conference of State Bank Supervisors and The National Mortgage Licensing Systems' (NMLS) required pre-licensing education and continuing education.
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