Investing for retirement starts with a plan

Rental homes can be a good investment choice for homeowners, because they are already familiar with ownership and the responsibilities of maintaining and financing a property. Maintenance on a rental is not that much different than on your personal home.

Real Estate offers investors high loan-to-value mortgages at fixed interest rates on appreciating assets with tax advantages and more control than other investments.

1. High loan-to-value mortgages – most investments require that you pay cash but rental properties can be purchased with 20% down payment, and as mortgage restrictions ease up that requirement may decrease.
2. Fixed interest rates – most commercial loans are based on a floating rate such as prime interest plus one or two percent compared to real estate loans as fixed rates for the term.
3. Long terms – commercial loans are generally short-term such as six months or a year with the possibility of being renewed for another six months or a year unlike real estate where a 30-year mortgage is commonplace.
4. Appreciating assets – real estate has a long-term history of going up in value.
5. Defined tax advantages – many investments are taxed as ordinary income but rental real estate enjoys a non-cash deduction called cost recovery, the profits from sale are taxed at lower long-term capital gains rates or may be eligible for a tax-deferred exchange.
6. Control – rental homes don’t require partners and afford the investor more options than investing in mutual funds and other traditional investments.

The demand for good rentals is strong in this current market, and the rents have increased consistently over the last few years.

If you do not have any investments setup now, in order to plan for your retirement.the sooner you start the better.As long as you make above minimum wage, you can afford to budget for savings and retirement. Put a plan into action now!