Rents 4 retirement | property Management Carlsbad California ...

I believe there is retirement gold in buying an investment property, finding a tenant, collecting cash flow while paying the mortgage off. ?Real estate can work out much better than stocks over the long run. ?Building a real estate portfolio is especially important if you do not have a pension, and if you do have a pension you can utilize the pension to buy real estate. ?There are different types of investment properties but here I am going to concentrate on what I at cannon real estate Carlsbad property management ?currently believe as the best investment and that is Single family properties.

Benefits of rental property:

1. Cash flow
2. Appreciation
3. Leverage
4. Depreciation
5. Leverage retirement (Self directed IRA)

Real Estate Vs other investments:

• Stocks
  Stocks are similar?to Real Estate in that they both appreciate in value and pay dividends. (called cash flow in Real Estate). ?However the stock market can be a volatile asset because of its daily appreciation and depreciation of values. The stock market volatility can be seen with it?s performance in the last decade. by july 2010 the index saw a 30.08% decrease. ?With real estate you the investor are in control.
• Mutual Funds:
  mutual funds shares appreciate and depreciates but cash flow-dividends is not paid to the investor.?
• Certificates of deposit
  certificates of deposit do not appreciate in value and on average in the last decade average return was 3.32%?
• Real Estate
  The average sales price of a single family residence at the beginning of 2000 was $138,000 according to national association of Realtors. ?over the past 10 years, the average sales price for a single family residence has risen to $179,600. despite the recent housing crash, the value of the initial investment added $41,600 in value?a 30.14% increase. This means $100,000 invested in 2000 would be worth $130,000 today. ?Of course the value is not the only source of income. ?the cash flow provided by the rent is part of the equation. ?

This means that if you purchased ?an investment property all cash and charged averaged rents (based on Census bureau averages) the cash flow generated would be $77,755, ? This means the value of the initial $100,000 investment in real estate today is $207,855?a total return of 200.8% compared to a Negative 30.08% return from the stock investment.

The key to real estate investments is buying right and making sure that you have cash flow when you purchase. here at Cannon real Estate Carlsbad property management our goal is to make sure you purchase the right investment property.?

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Source: http://cannonrealestate.com/rents4retirement

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