4 Reasons to Consider Property Investment in Retirement

Are you getting close to retirement and looking into forms of passive income? Perhaps you don’t want to have to wait on being able to cash in on your 401k, Roth IRA, or cash out your stocks. What if you don’t want to worry about running out of retirement money? Well, investing in real estate can certainly help these issues. Real estate investing has helped many people to secure a comfortable lifestyle.

Reason #1: Additional Retirement Income

Let’s be honest; retirement is expensive. Who wouldn’t like an additional retirement income?

When it comes time to retire, you’ll likely be dealing with other expenses such as Medicare. Perhaps you’re shopping around for different Medicare Supplement companies and thinking you could use some extra cash inflow. Investing in property and renting it can be a fantastic form of ongoing income.

Rental income comes in every month, and as long as you have your property rented out – you’re going to keep making money. Shelter is a fundamental human need; everyone needs a place to live – thus, an investment property makes for great cash inflow.

Reason #2: Tax Advantages

When you own a property, you will usually have no restrictions on your real estate income. You can also make multiple deductions associated with your property, such as insurance, property taxes, rental application screening costs, mortgage interest, real estate marketing costs, and property management fees. These deductions show a loss when reporting rental income, even though they’re earning income for retirement through real estate. Overall, the expenses associated with the rental property can be deducted.

Reason #3: Direct Ownership

Owning an investment property in retirement means you’re in control. There are many chief benefits when you have direct ownership of your property. Ultimately, you are the one to decide how much revenue it will take to help fund your retirement and break even. One rule of thumb is to earn 6% a year on your investment property.

Another perk is that you get to decide where the location you purchase the property is. With real estate, location is everything! If you pick a great location and establish a good cash flow – you can weather the storms you may face in real estate.

Reason #4: You Can Pass Real Estate Down

If you want to leave something to your heirs, passing down real estate is a great option. Real estate is an income-producing asset, but it typically appreciates with time. Your heirs can continue your tradition of renting out the property or sell it and earn a profit. Suppose you’re interested in leaving something behind for your loved ones. In that case, this is a great reason to consider a property investment during your retirement.

Pros of a Property Investment

Let’s go over the pros of a property investment!

  • Greater sense of security because it’s a passive income source.
  • Operating expenses, mortgage interest, and owner expenses are tax-deductible.
  • You can defer your capital gains tax.
  • The equity in the property is yours.
  • Having control of the property since it’s yours.

There are many pros to owning a property investment. Suppose the pros mentioned so far in this article seem compelling to you. In that case, it is a good idea to meet with a realtor and start exploring potential properties.

Cons of a Property Investment

Just as there are pros, we must mention some cons of owning a property investment.

  • You will have landlord responsibilities when owning a rental property.
  • Property taxes.
  • The rental property will need constant maintenance.
  • Changes to the neighborhood or HOA rules.
  • A lack of liquidity.
  • The risk of having bad tenants.
  • You’re tied to the real estate market; whatever goes on in the market could affect you.


If you’re considering property investment in retirement, hopefully, this article clears some questions up for you. There are some great reasons to consider property investment in your retirement. Think about the pros and cons and determine if it makes sense for you to own an investment property.

Back To Top