As an elderly person, possibly in the age group of 60 who has just retired, you might like to grow your retirement funds to protect your principal against the impact of inflation. Find out about some reasons why real estate investments are perfect for people in the elderly age group. Find quotes at www.medisupps.com/medicare-supplement-plans-2019/ for supplement plans and money saving help.
You can start small
You can begin small even when it comes to investing in real estate properties. It is relatively easy to start this kind of investment, as you can purchase homes for very small up-front payments. You can have subsidized payments by having them deductible against the income that you have earned.
Financial Leverage is possible
Financial Leverage indicates how much debt you should use for funding real estate. Retirees who make successful real estate investments have their leverage optimized. With more leverage, you can make fantastic investments. Lots of investors have a particular strategy for detecting investment opportunities and optimizing leverage. It includes acquisition plans that reduce the need for cash for a project. Even if you have small retirement funds, you can enjoy the advantages of financial leverage.
You can compound money
Investments in commercial real estate generate compounding cash flows. You need a more or less long-term horizon to benefit from the same. Retirees can put down 10,000 USD on a duplex apartment that stands on a proper location. They can earn 21% every year with minimal risks over the next 15 years. Although you have to wait for several years, you can be assured of almost doubling your investment.
Inflation Resistance is possible
The value of real estate happens to increase with inflation. The value of most properties often increases more quickly than inflation as it is in comparatively less supply than other services and consumer goods. The supply of real estate properties is price-insensitive. As there is higher demand, prices tend to increase more in this sector.
You can get tax benefits
Note that interest costs for your own home or some commercial properties might be partially or completely devoid of taxation. This ensures that the funds costs are lowered by marginal tax rate. Owning real estate is also advantageous from the tax perspective as there is the chance for rental property depreciation. Depreciation happens to be a non-monetary, legitimate deduction for offsetting revenues that would be otherwise taxable. Thus, you can display that you have suffered losses on your investment on properties, and use it for lowering your own income and reducing your taxes.