Florida The Go-To Location for Post...
Why Should You Invest in Real Estate Post-Retirement?
As you approach retirement, it’s important to find other ways to add to your nest egg. Real estate is a popular investment option among retirees because it is a smart way to turn inactive cash into usable income. A popular option for smart investors is finding a vacation home that they can rent out to help cover expenses but also use themselves when they want a quick escape.
Here are some more smart reasons to invest in real estate:
With the free time you gain in retirement, you can research to find the best deals on properties. And if you find a place that is listed below market value, you are basically guaranteed a profit if you rent it out. Look for foreclosures and off-market properties that are otherwise overlooked.
Your personal equity gradually increases with each mortgage payment you complete.
You can expect up to a decent return on your investment when you rent your property based on its full market value, not necessarily what you paid.
- In some areas, there are multiple tax benefits on the interest you pay on investment property renovations.
Is Florida the Best Location for Your Real Estate Investment?
If you want to invest in a house or condo with the intention of renting it out to cover costs, the first thing you have to do is find one in an area where there is a high demand for rental properties. A state like Florida, with its hundreds of millions of visitors that travel here each year, is the perfect location for a vacation home. People from all over the world travel to the Sunshine State every day to take advantage of attractions like pristine beaches, world-class dining, and Miami’s vibrant nightlife.
Investing in a Florida vacation home through Advanced Realty ensures you have a large enough market for rental success, but the benefits do not end there. When you are retired, you have free time available to escape your day-to-day life and enjoy something else. Just imagine having a little bungalow by the beach or the swanky vacation condo you’ve always dreamed of. You can enjoy the sunny, warm climate whenever you want, and even escape winter blizzards if you so choose.
Renting Out Your Vacation Home
One of the greatest benefits of buying a vacation property is turning it into an income-producing asset by establishing it as a rental business. If you’re worried that it will be too much work, you can hire a property manager to take care of the day-to-day responsibilities.
To eliminate any concerns that your rental business will be vulnerable to lawsuits, you can alleviate this concern by structuring your rental business as a limited liability company, or LLC. Not only will this safeguard your personal assets, but it will also help you qualify for the fantastic tax breaks mentioned earlier. Setting up a Florida LLC couldn’t be easier with the help of an online formation service.
A Few Words on Disaster Preparations
The one thing about investing in a Florida vacation home is having to prepare for the likelihood of natural disasters. Last year saw a record-breaking hurricane season, and though the Miami area was mostly spared, it’s always a question mark. While you can’t prevent Mother Nature from rearing her head, you can help prepare yourself for hurricanes by:
Buying flood insurance. Regular home insurance does not cover damage caused by rising waters.
Considering keeping your property off the rental market during the month of September, which is the most active month for Atlantic hurricanes.
Investing in permanent storm shutters to protect your windows.
Stocking your home with tarps, canned food, distilled water, and other storm-preparedness supplies.
Keeping your gutters and downspouts clean and trimming tree branches that may break and fall during extreme winds.
Ensuring your home’s HVAC system is ready for the storm. Having no air conditioning in Florida is not only uncomfortable, but it can also be dangerous.
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Real estate is a smart investment for retirees who want to make sure their cash is active during their Golden Years. Many people choose to buy a vacation home in Florida they can rent out to tourists but also enjoy on their own time. While there are many benefits to owning a Florida vacation home, there is one big drawback: hurricane season. However, with the right insurance and preparations, you can protect your investment in case of a storm so you can enjoy it the rest of the year.
When you’re ready to take the leap into Florida real estate, turn to the experts at Advanced Realty to find the perfect property. Call today to connect with one of our experienced real estate agents. 954-232-7171
By: Jim McKinley
