Today we wanted to tell you about an investment option you might not have thought of, and that is buying your retirement home early, and then renting it out until you’re ready to live in it yourself. We have seen a large increase in this type of investment in the Santa Cruz area recently, and it makes a lot of sense. The proximity to Silicon Valley makes it a great option for people who live there. Interest rates are still quite low and although the market is tight for properties, future planning is never a bad idea.
If you find that property in Santa Cruz that you’d like to have for a retirement home, it works really well to buy it now. When you buy a property for the future, you usually have a specific location that you want. The location might be the biggest reason you choose one property over another. That’s going to make it a desirable rental for someone who is looking to rent the same type of home in the same area.
You will be able to get maximum rents for your property, and you can spend time fixing it up to a certain level that would make it a good rental. You don’t have to go over the top, because you’ll probably want to do extra work when it’s time for you to take possession.
Buying your retirement place now and renting it out for a while is a fabulous way to begin building your retirement nest egg. You’ll have the property, you’ll collect rental income every month and you’ll have a great write-off for tax purposes. All this happens while you are renting it out and then when you decide to live in the property yourself, you can move in whenever you want.
It makes sense to think long term, especially when you’re deciding where you’ll want to live once you retire. If you want any help planning what to expect down the road, please contact us at Portola Property Management, and we can help you get a little closer to your retirement dreams.