You have many options for retirement investment. From stocks and bonds to savings accounts, business investments, and more, there are no lack of investing options. But Red Blue Realty strongly believes the best investment for retirement in the Los Angeles area is Los Angeles real estate. The rate of return on such an investment is not only steady and secure, it has huge potential for growth. In order to maximize this investment goal, prospective investors just need to find the right property in which to invest, consider the length of time they want to keep the property, and then work with a professional to select the property, find financing, and look at rental amounts and improvements that work with a specific real estate marketplace.
Investors considering real estate must start by deciding the type of property they wish to buy, and of course, where. Several of the considerations investors should make are:
- the potential increase in property value over time
- rental income potential
- purchasing multi-family homes or apartments
- purchasing a single family home
Purchasing multi-family residences versus a single family home are both solid rental investments. Single family residences may draw more long-term renters, or provide a deduction for property owners as a second home. Multi-housing units can offer a greater return and stream of rental income.
Regardless of which property type you choose, long term property appreciation in Los Angeles real estate is virtually guaranteed. The city’s urban core continues to expand and grow economically. Investing in rental properties won’t result in a monthly income loss for investors, as rent will cover mortgage payments.
Investors seeking the best retirement investments are drawn to real estate for all of these reasons. The decision regarding exactly what property to purchase begins with choosing between purchasing a second home or purchasing for rental housing. A second residence has advantages: it can be claimed as personal property on an investor’s income tax, and it is simple to maintain. Interest payments are tax deductible and investors are allowed to deduct payments up to $1 million on either a first or second home property. To qualify as a second home, you must live at the residence for at least fourteen days or more every year.
Rental properties have the potential for far greater return, but require more hands-on knowledge about investing in them. Investment considerations for rentals include calculating the amount a market can bear in rents, and the use of property enhancements to improve rent amounts and secure long term residents.
Before an investment property of any kind is purchased, buyers should consult with real estate professionals regarding the rental values in any area, as well as analyzing location, schools and available housing units, and area growth and crime rates.
Red Blue Realty can offer you the solid knowledge investors need to find the best retirement investments. From neighborhood to rental pricing, loan financing advice, and upgrades that most enhance a property’s rental and long term value, we can help.
Whatever property type chosen for investing, real estate is undoubtedly one of the best retirement investments in the Los Angeles area.
Real estate investments allow steady income steams that grow every year and can be tax deductible. The expertise of a professional real estate company like Red Blue Realty affords options for real estate investment and real estate profitability for you.