It’s the time to indulge in activities and passions that perhaps you did not have time for in the past, and pursue things that you have dreamed of for years, like that trip to the Maldives. Perhaps concerns and questions regarding your finances are preventing you from enjoying this time to the full — wondering how much you can really afford to use now, what you would still like to save for in the future, and for your family, and how far it will really stretch are common, and normal, concerns. But, they don’t need to be. The reality is, a little extra income never hurt anyone. Whether it is used to put towards saving funds for your grandchildren or those art classes you have always wanted to do, there is always space for extra income in retirement. While the thought of going back to work, even part time, may be your worst nightmare, there are still options for generating income in retirement, without having to physically go in every day. One of the best ways to generate income in retirement, is to invest in property, ideally foreign, and here’s why:
With a long term tenant, you are guaranteed a monthly income: as this article states, “Renting generates a steady monthly paycheck, like a classic dividend-paying utility stock. Any price appreciation is a bonus.” Buying and renting an investment property ensures that you are still earning a monthly income. You can then decide how this money is best spent and/or saved.
It is considered a hard asset: hard assets are the investment types that have an inherent value. This article sums it up wonderfully, “Like real estate anywhere, real estate overseas is a hard asset, and, in the current investment climate, hard assets are the most sensible investment class, the best choice for storing value.”
It doubles up as a holiday home: another wonderful thing about an international property investment, is that you can make use of it whenever you desire. If you strongly dislike the cold weather and would like to chase the summer, you can buy in a country that either has mild, sunny winters, or phenomenal summers (or both!), where you can rent it out for six months of the year and stay in it for six months. Or perhaps it could be a place visited over the holidays where the whole family can join you. Another option, is well into your retirement, you can sell your current resistance and use the property as your retirement residence in paradise — whatever you decide, it’s all up to you.
You can determine rental periods: when renting out your property, you have full control. You can decide to rent it out at a premium per night during high demand periods, for vacation rentals only, monthly or yearly, all based on your needs or desires. What matters here is that it is entirely up to you, and you can change your mind whenever you please!
It contributes to a diversified investment portfolio: while a fair deal of stocks, bonds and cash investments as are highly recommended for an investment portfolio, with an international property investment, you can rest assured that you have a well diversified, and therefore safer, investment portfolio. According to this article, “Real estate overseas provides portfolio diversification — diversification of currency, diversification of market, and diversification of asset type (rental, raw land, condo-hotel, etc.)...” all very positive factors.
Real estate income in retirement could almost be a form of passive income. Passive income means that a certain amount of money is generated without having to do any actual work. To achieve a situation when your income is truly passive, without you having to do ANYTHING, is virtually impossible. However, rental properties can come very close to this form of income in retirement. While the upfront costs of a property may be high and the initial work/involvement can be quite a lot (researching, finding, viewing and all renovations, repairs etc), once you have a tenant, the work required is fairly minimal. This is especially true if you hire a property manager who can take care of all the nitty gritty for you while you reap the rewards.
It is more than just an investment: a home of any sorts is a special thing, it can be a place to live, a form of income in retirement, a place where holidays are spent and memories made. But it is even more than all of that. One day, it can be something that is passed down through generations — from heir to heir — a legacy.
If an international investment property sounds like your idea of a great way to generate income in retirement, than look no further than Calpe, Spain. The incredible climate ensures that Calpe sees approximately 325 days of sunshine, allowing you, and any of your tenants, an opportunity to really enjoy the spectacular area. Contact us for more information and an extensive portfolio of the most incredible villas in Calpe — perfect as retirement investments. Not only that, but our in-house tenanting service can help you with all your rental needs, allowing you even more time to enjoy your retirement to the full.