What Makes a Good Retirement Property Investment?

Saturday, June 9, 2018, 6:00 AM | Leave Comment

For many people, the dream retirement involves acquiring the perfect property.

After a life spent working and saving, who doesn’t want to be able to enjoy the benefits of the perfect retirement property?

However, there are many things you want to consider to get the most out of your investment. Without the right planning and research, you won’t be able to maximise your investment and reap the great rewards on offer.

We’re going to look at a few of the most important things to take into consideration, including:

  • Location

  • Sustainability

  • What to look for in the markets

What Makes a Good Retirement Property Investment

  • Consider the Best Location Carefully

    Naturally, the first thing you are bound to start investigating is the best location for your investment property. For many people, the ideal retirement investment is somewhere outside of a major city, but still within easy commuting distance.

    Many dream of a retirement in the countryside, and this is definitely within you reach. However, even within this category, there is a huge amount of variety, and some properties are a better bet than others. If you’re looking to make the most out of renting out your investment property, you’re going to need to choose somewhere with a sufficiently high demand.

    It’s no secret that, in many major cities, rents are currently at an absolute premium. Property in a place such as this could bring in some impressive benefits. However, what you get out of your investment could easily be outweighed by the major demands of being a full time landlord. Estate agents can play a major role in mediating, but you will have to accept the loss of a significant cut of your investment.

    A particularly good choice for investment is in a university town. A reasonably sized house in such a place is a great choice for investment, as you are all but guaranteed a steady flow of renters. You will also benefit from the knowledge that rental periods will be predictable, and in step with university terms.

  • Supply and Demand Determine the Worth of an Investment

    As it stands, in many places, there is practically a chronic undersupply of housing. Major cities are a good choice for purchasing an investment property, but there is a major flip side to this dynamic. One of the key reasons that there is no shortage of renters in such places is because property is currently unaffordable.

    Where once the standard renter profile was someone in their early twenties, today there are many young families forced to rent, as properties are currently out of their financial reach. You may be tempted to make the most of your savings by investing in a property in a major city, but the unreliability of urban housing markets could be a reason to pause.

    Many pundits are suggesting that we are not far away from a major housing crash in some places. An investment in what seems like a winning property could result in your house losing its value practically overnight.

    Smaller cities, and areas outside of cities, could be a far better bet. These markets are generally more predictable, and the dynamics they rely on play out over a much longer time. It’s also worth considering any changes you may want to make to your property.

    A quick search should allow you to find out a little about planning laws in your desired area. If you are looking for a property to do up, or move into yourself, you don’t want to find yourself landed with something you can make no changes to.

  • Investing Abroad Has Its Share of Pitfalls

    There’s always the opportunity of investing in your property abroad. In some parts of the world, your money could go considerably further than it can at home. However, given the current political situation, it’s worthwhile considering whether or not this could prove to be a reliable investment.

    If you find yourself in a situation where you lack the right to live in your chosen country, there won’t be much you can do about it. Some people choose to invest in properties as a holiday home, renting them out to other holidaymakers in the meantime. This can turn out very well, but also has its own share of pitfalls.

    If you’re relying solely on an agent located in the other country, you may find yourself unavailed of the realities of the situation with your property.

There’s no end of options when it comes to investing in a retirement property. Analyse your own requirements. Do you intend to live in the property yourself, or is it solely for renting? Are you familiar with market trends, and the possibilities that future economic changes could bring about? If you put in sufficient time and research, you can greatly improve your chances in investing in the ideal property.

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