I don’t like dog food! (And a few other reasons I’m in real estate.)

I’m picky that way. My dog was always thrilled whenever she could get her chops on more crunchy morsels of it, but no matter how much her tail wagged or how happy she looked, she never managed to get me to join her for lunch. And a thought of having to eat this stuff to save money when I’m old always sent cold shivers down my back.

Most of us plan for retirement in some way. We save, we invest in 401(K), or buy government bonds which until recent time were considered one of the safest ways to grow your money slow and steady for retirement… then in comes inflation and eats up a chunk of our money stash. Throw in some unstable market conditions and a couple unemployed family members pulling on our heart strings, and that retirement fund may get skinnier and skinnier.

Real estate investments are not a bullet-proof vest against a recession or inflation. We all have seen that property values can and have gone down in the most recent economic downturn, taking with them many people’s savings and hopes. However, unlike stock market investment, it is fairly difficult to make the value of real estate you own disappear completely (hint: do not buy in Detroit area where houses are worth a $1 and it’s difficult to find any jobs). And here are three other things real estate can do for you that many other retirement plans cannot:

  • If you invest wisely and do not over-extend yourself, paying your mortgage every month grows your equity, and if we’re talking about an investment property, with the right numbers, your tenants are the ones paying off your house.
  • Depending on your preferred plan and desired levels of income, you can rent your home out month-by-month, lease it to someone, or put it up on Airbnb. Don’t want to deal with tenants? Flip and sell. Don’t want to sell but need some cash? Get a home equity line of credit you will pay off later.
  • If you buy a fixer-upper and spend money on applying the needed repairs, with the right planning, that investment, along with added value of re-appraised property, returns to you in the form of equity – or cash money upon the sale.


*Disclaimer: this is strictly an opinion piece. No portion of it is meant to guarantee real estate returns or discourage you from using other forms of investments. Please consult a financial planner for a portfolio review to get the facts on where you stand in your retirement planning.


Marina Alkasas | Realtor® |Cal DRE License # 02070557 | Century 21 CARE

1081 Grand Ave, Diamond Bar, CA 91765
(909) 305-3519 | marina@malkasas.realtorhttp://malkasas.com

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