Who Should Invest in Income Producing Property (IncP)?
People I meet often ask, "Should I invest in income producing property (IncP), would that be a smart thing for me to do?" My answer is always the same. If you have a natural curiosity or interest in real estate, yes! If you are motivated to make money and willing to expend the time and effort and learn to invest successfully, then yes, absolutely! When it comes to pre-retirees, the following groups should consider investing in income producing property:
Skinny Nest Egg - Your are "on target" and fully invested in the stock market. You are counting on those 10% annual gains and are growing concerned, based on the real stock market returns since 2000.
Anti Liquidate - Your plan to live on just the interest and dividends is looking like a stretch. Spending down the nest egg will keep you up at night and might lead to miserly or eccentric behavior!
Max Legacy - Your want to leave a significant sum of money to your heirs or favorite charity, without compromising your lifestyle during retirement.
Retire Early - You want to create a sufficient income to escape the employment "rat race" and travel, volunteer, go back to school and chase your dreams!
For those with a system for investing in the stock market that consistently beats the DJIA, forget about real estate, borrow all the money you can and go for it! If you have other investment alternatives that produce superior returns with less effort, pursue those first. For everyone else, if you are motivated and willing to invest the time and effort to be successful with IncP then start today!
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Comments (4)
Thanks for your reply and good questions! I’m not a financial advisor but I believe there are ways to reduce market risk for stock investors, other than investing in real estate. I used “consider" as an appeal to the multitudes blindly lumping $ into stocks who have traditionally been afraid of real estate. I recommend REI for everyone in these situations if they have the interest, want to learn and will actively participate in the process. I hope that helps and again, thanks for your questions!
John Vashon, about 11 years ago
A question for you: people who ask and have interest you tell them "yes, absolutely!". To people who make better returns on the stock market, wouldn't you counsel them to balance their portfolios with IcP? You then listed some who should "consider" IcP which sounds more of a cautious recommendation, much less of a "yes, absolutely! Would you consider that investors in all of these situations should consider an REI pathway that meets their goals?
John McCombs, about 11 years ago
Hi! Thanks for your reply and what's missing, what would you like to know? jv
John Vashon, about 11 years ago
Where is the rest of the article?
Chris Cox, about 11 years ago