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Insight & Opinion

Heading to retirement? Tips to handle your real estate investments

Author: Luke





Rental properties can provide a good rate of return and help you to live a comfortable retirement; no matter how early you intend to retire and how long you hope your retirement to last.

However, as with anything, rental property ownership is not for everyone; it is essential to be aware of the following points before undertaking real estate investment:


No matter what age you are it is possible to arrange finance for your rental property. However, there are a variety of options available and it is advisable to understand all of them. This will ensure you get the best deal possible and maximize your returns.

• Traditional mortgage
This requires a twenty to thirty percent deposit and age can play a factor in approval ratings for a mortgage. Investment mortgages tend to have slightly less attractive terms than your standard mortgages and it is more difficult to get this type of loan as the criteria has become stricter.

• Owner occupied
You can purchase a property as an owner occupier but you will need to live in it for a year before it is possible to rent the property. This may be an option if you are considering renting your current property and looking to purchase a second or third one.

• Portfolio lender
These are people who lend specifically to real estate investors and can offer some very favorable terms. The loan stays with the original lender and needs to be repaid within their terms and guidelines. There are a variety of other finance options which may suit your needs, a real estate agent can often advice the options available to you.

There will be times when you need additional funds to cover a lack of tenants or an emergency repair. It is essential to have an amount of funds kept in reserve to deal with these issues. If you have a current tenant you will not be able to put off essential repairs!


There are several taxes which you need to be aware of as well as a variety of taxable benefits which can be achieved by managing your portfolio correctly. It is best to seek the advice of a tax advisor to ensure you are making the most of your money.

The right property
The best real estate investments are those you have purchased with rental in mind and not as a home. Good rental properties need to be near local amenities, in an area with a good reputation and available at the right price. A general rule is that the rental price of a property per month should be one percent of your initial investment. This will ensure you have a good chance of earning money from the property.

The best properties to own in retirement are those which have no finance on them; this will ensure that all the income generated by the properties can be utilized by you and relieve the pressure when dealing with bad tenants or no tenants. The most important aim of a real estate investment is that it will be finance free before you are ready to retire.

Heading to retirement? Tips to handle your real estate investments

Every property you purchase needs to be fully researched to ensure it reaches the criteria described above. If you have established a good rental rate in comparison to the down payment and are able to clear the finance before retirement then your property investment will stand a good chance of generating an income that will help you to live comfortably in your retirement.

Property investment is a numbers game, the rental income must be enough to cover all costs and leave a little left over for emergencies. This will make it a viable income generator in retirement. Being prepared and doing the research will make the difference between success and failure. When it comes to buying property in your senior years, many people ask themselves “where to buy from?” Why buy a property in Turkey, but then again, why buy a property in the US either? Before making any choices, ask for guidance. A qualified broker or financial advisor will know both the local and the international market trends; thus he’ll provide you with the best assistance.

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