Late to the Game / 10 year retirement plan
Fresno, CA · Member since 2024 · 2 posts · 1 vote
Late to the Game / 10 year retirement plan
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
2yQuote from @Tony Ferreira:
Hey Team,
So as the title states, I am late to the game as I just turned 52. I continue to hear that real estate investing outpaces any other investment account. I am not in need of positive cash flow, although I know that is the point. I do need to build up to that positive cash flow at the 10 year mark. All I have to work with is $50K and the $150K equity in my own home. Interest rates are high today, but do I wait and buy when rates drop or wait when prices jump? I feel that getting in now would just jump start my plan instead of waiting. I'd love to get into Multi-Family, but do the numbers make sense? What would be your 10 year retirement plan if you were in my shoes?
Tony
While this is a real estate forum, real estate does not outpace other investment accounts, they are almost identical and historically the difference is so slight it would not change your way of life. Where real estate can assist compared to most other investments is you can leverage real estate.
Whether to jump in now depends not only on interest rates but several factors including where you are financially, do you think values will increase or decrease over the next 2-5 years and will the investment provide you with a better return than investing the $ somewhere else.? For me I am a few years younger than you, and ten years ago I was restarting most of my life and was able to do pretty well in a ten year span. One thing I did not do is rush it.
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3 Replies
- Real Estate Agent · Central New York · Member since 2023 · 207 posts · 96 votes2y
Hey Tony! It’s never too late to get into this space. Objectively, it doesn’t seem like waiting for rates to come down would make a huge impact in the current economy. Rates are only expected to drop to the 6%ish range by the end of the year if everything goes according to plan. But what happens after that? For all we know, interest rates may not significantly change for quite some time. And honestly, a few 1/100ths of a percentage doesn’t make a huge difference in the monthly note. Does the return now (rental income, asset appreciation, etc) outweigh the potential for rates to slightly drop in the unknown future? That’s a personal question, but time is money! If you have a 10 year plan, it seems like you may need to be more aggressive in order to get notable returns in that relatively short period of time
- 2yManny VasquezBusiness MemberReal Estate Agent · Orange County · Member since 2022 · 317 posts · 293 votes
Tony - Its never too late to invest! One of the single most important pieces of advice that I have ever received is that Timing the Market doesn't work, however, Time In the market does.
I wouldn't wait at all to buy property. If you find a property and the numbers work out, then buy it. Remember, when rates drop then you can refinance and benefit from owning the property and having a lower rate.
If you wait until "rates come down" then everyone will be in the same race and someone else with deeper pockets may beat you to the property.
If there is one thing that EVERY member of BiggerPockets would agree on, is that EVERYONE wishes they bought properties sooner or earlier in life.
Buy now my friend.
I hope this helps and good luck!
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes2y
Quote from @Tony Ferreira:
Hey Team,
So as the title states, I am late to the game as I just turned 52. I continue to hear that real estate investing outpaces any other investment account. I am not in need of positive cash flow, although I know that is the point. I do need to build up to that positive cash flow at the 10 year mark. All I have to work with is $50K and the $150K equity in my own home. Interest rates are high today, but do I wait and buy when rates drop or wait when prices jump? I feel that getting in now would just jump start my plan instead of waiting. I'd love to get into Multi-Family, but do the numbers make sense? What would be your 10 year retirement plan if you were in my shoes?
Tony
While this is a real estate forum, real estate does not outpace other investment accounts, they are almost identical and historically the difference is so slight it would not change your way of life. Where real estate can assist compared to most other investments is you can leverage real estate.
Whether to jump in now depends not only on interest rates but several factors including where you are financially, do you think values will increase or decrease over the next 2-5 years and will the investment provide you with a better return than investing the $ somewhere else.? For me I am a few years younger than you, and ten years ago I was restarting most of my life and was able to do pretty well in a ten year span. One thing I did not do is rush it.
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