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Is real estate a smart decision for a retirement portfolio?


Most millennials today consider smart investments before their retirement age. Most invest in mutual funds, pension schemes, debt funds, and stock markets to secure their future after retirement.

However, with the volatility and uncertainty in stock markets, the investments seem rather complex regarding future gains. While these investments have been considered the norm, the older generations have always believed in investing in gold and real estate as a traditional form of investment. Be it a home or a commercial space, the investment made in real estate needs significant capital. The first need for any investment is home ownership, and then the properties that can be leased for a regular income.

Homes that are for personal ownership need to be prioritized for their location, commute, and daily conveniences. With the rapid infrastructure development in metros especially in south Mumbai, the demand for homes in Worli, Prabhadevi, and Lower Parel has shown significant growth. Worli is now considered the hot spot for real estate because of its rapid infrastructure development like the upcoming Coastal Road, Bandra Worli Sea Link, Worli Sewri Elevated Corridor, Metro station, and its commercial viability. Residential properties have seen a rise in demand among investors and home buyers alike. Homes of 3 & 4 BHK with sea-facing views like Vraj Tiara at Worli are being considered as being well connected and for the 270-degree sea view.



Here are some ways to invest in real estate and get a financial footing to help you get a regular incomve post-retirement.

Start Early
When you plan to invest in real estate, deciding on the type of property you wish to invest in is essential. The property with the potential to grow your wealth towards retirement should be considered an ideal investment. Infrastructure development and future earnings would improve one’s lifestyle if given on rent.

When you plan to create wealth for the future, you need to start early in life. The target should be to be free from property loans 5 to 10 years before retirement.

Reduce your debts
While most of us enjoy spending by taking personal loans because of a regular income that is expected every month, if the debts grow beyond the means, the credit scores will affect the loans in the future. Therefore, it is essential to focus on the long term and invest the money in a property to grow your asset.

Earn via rent
The earnings from rental properties can provide a sizeable chunk to grow your Income. As you grow your income and invest, the high rental yield will help to retire early.

Analyze your investments
Sometimes the initial decision to purchase the property has not been as per the requirement due to location, rentals, or the area’s slow development; deciding to sell or reinvest is essential.

In conclusion, real estate investments although being real and tangible, are more secure and are now rapidly emerging as a more viable option for investment compared to bitcoins or any other assets where the risk factor is much higher.

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