Buy a House

Most of us when we start working start thing of it saving to secure a future. What is the future? Getting married, buying a house having children, their education, their marriage and then retire. At every stage you need money and as you keep spending there is no money left at the time of retirement.

We talk of retirement corpus or investing in retirement plans etc. to get regular income. Why not think of buying a second house for retirement purpose, to give you steady and regular income.

You might say, it is costly, yes it is. That is because you looking to buy in the same locality or vicinity of where you are staying. Look at places just at the outskirts of the city. As cities grow, these outskirts will become part of the city and the property price will appreciate, with that the rental income as well.

But don’t wait till you become 60 to buy the second property. Property prices rise, but they rise slowly, it has been noticed that it takes around 10 years to get a good return from your property. If you invest today and expect a high return forget it. If you get around 5 to 6% return in the form of rental income it will be great.

Remember the second property you purchase is for generating income after retirement not now. What do you do when you invest in a retirement plan? you leave the money to grow with the investment company till your retirement age.

Just as with retirement plans there is a risk. The value of the property might not grow. So what do you do? You do a little research and check the prospects. Some clues like a new airport would be coming up. Yes the airport would take 10 year to come, but when it comes the value would rise. Since when the airport comes, jobs will come and the people working there need a place to stay and the property prices go up, so will rental income.

As history shows, property prices have never gone down, it is on a one way road, up.

If you had invested early in property, then in bad times like when the economy was down and you lost your job, the income from this property will help you scrape through.

If you have a little more money, land would be a better option. Between land and an apartment, land always gives better returns.

So what are you waiting for? Start investing.