By Peter Psotny - August 10, 2017
What is your retirement plan?
Most of us would list off a combination of savings and securities, including: stocks, bonds, 401k’s, IRA’s, etc. But, don’t forget about real estate. If you own a home in the Denver area, especially in the starter home price range, it should definitely factor in to your retirement portfolio.
Denver is currently experiencing a serious shortage of single-family starter homes. If you happen to own one, this market is for you. Now is the time to consider making a move. The profits from selling or renting out your home can be put towards your retirement.
If you are in the starter home price point, it’s likely that your home will sell at a profit. If you’ve owned the home for a considerable amount of time, you’ll probably have a large amount of equity. Utilize that equity to buy a move-up property or put it into a retirement savings plan such as an IRA or 401(k).
For a continuing source of income that could secure your financial future, consider renting out your home. The lack of single family homes on the market has pushed Denver rental rates to an all-time high, creating a new group of renters: young professionals and new families. In another market, this demographic would typically be in a position to purchase a first home. In the current market, they make ideal renters. Renting out your home is a great option, particularly if you own the home outright or if you’ve secured a low interest rate.
There are several ways to make becoming a landlord in retirement a viable option:
Continue living in your home and rent out only a portion of it. If your home is paid off, you are only making money in this scenario! Plus, if you’re looking to downsize, you get to do so without letting go of your family home.
Rent out your entire home for a premium rate or rent it out per bedroom. Either way, you’re likely to earn more than enough to cover your expenses.
Hire a property manager to help with property maintenance and day to day renter management.
Before you sell, talk to a professional who can assess your home, your individual situation, and all the details needed to make the most beneficial decision for you. Call 720-220-2059 to talk to the experienced real estate agents at Colorado Home Sales, Inc. today.