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It can be great for income. However, the return on the investment has to be better than more liquid investments.
With all time low interest rate to put savings in the bank owning a CD live on interest has not worked for all of us.
White Plains, NY
San Jose, CA
I would tell them to add a rental property to their retirement portfolio based on the strength of the rental income rather than the potential appreciation they might receive from the property.
White Plains, NY
Not necessarily. Someone could have a nice portfolio of stocks, bonds and insurance products. Having rental property can take some skill and know-how...compared with other, more passive investments.
Nina Hollander, Broker
White Plains, NY
No it is a lot of work and I do not want any rental property Debbie. I have managed many properties and unless you either have a lot or are really handy you can loose your years profit or go negative in a flash.
Hi Debbie -- it depends on the person. I believe it is but it may not be for everyone. It's a great question to start a conversation.
It depends on the situation in my opinion. I am working on my retirement and always investing and have been doing so for years. But, I am just in my early 40s, so for me, the flipping is better so that I have quicker return.
I would tell them they need to make that decision and we can help them if they decide they want to purchase properties.
It depends on the Market in the Community. This can work out really great for some though.
Yes but I have had the worst luck with renters. So know I flip house works out better.
Debbie Reynolds Yes, if you can put up with the headache of owning rental properties.
I'm pretty sure real estate investing still leads the list of those on the Forbes 500 Debbie. Nothing wrong with that diversity in the portfolio that I can see, although it's not for everybody.
I would discuss the pros and cons of this kind of investment, but really in the end, it's up to each individual and what kind of portfolio of assets they want and are willing to manage. There is no one answer or no one right answer to this quesiton.
Debbie Reynolds undoubtedly!
Should not we trust the product we sell?
We don't own any rentals, but If I could, I would to help in retirement.
I would tell them that in my opinion (with the caveat that I am not an accountant or a financial adviser and they consult theirs), it may be a good investment depending on their overall investment plan. We worked with serious investors/developers, and in every offer we made, that disclaimer was part of the language in our contract...A
It can be but it could also be a drain on a persons cash flow when they can leasst handle it.
While I think some people can do well with this, it's not for the majority of the people. Besides the fact that it can be rather risky, most people don't have the skills for this and underestimate the time and maintenance involved. When people are evaluating this they forget that at time there is a new renter there is lost income from vacancy, potential realtor costs (or else their time..which costs money) and repair/maintenance cost.
Personally, I think there are much easier and less time consuming and less risky investments.