Should retirees invest in real estate?

As a retiree, have you ever wondered where you should invest your money? You may have heard a lot of suggestions from people saying you should invest in real estate or in the stock market. But if you have just become more confused with those suggestions, this article will help you decide whether real estate investment is right for you.

There was a time, years ago, when people investing in real estate were guaranteed a profit. Sadly, that ended back in 2008 with the real estate crash. Now, people who once invested heavily in real estate are simply looking for good bargains that can earn them a bit of a profit. So, while there may be numerous opportunities to invest in real estate at the present time, you have to carefully review every aspect of it to make sure that your investment doesn�t result in a loss.

� Carefully Assess the Risk- Retirees are more careful about their decisions as they know they cannot afford a do-over. If you invest in real estate, you are taking a risk, especially now that there isn�t enough time to recover or regain what you might lose from your investments. Real estate is becoming one of the main investments being considered by retirees, aside from stocks. However, before you put your money into it, it is very important that you review certain aspects of real estate. Just like any other investment you need to ask whether or not it is a promising investment vehicle, provides constant income, protects against inflation, and is easily reversible. While there may be some real estate properties that turn out positive in all those aspects, individuals nearing retirement age should be more discerning.

� Profitability- If you are looking for a property to invest in, make sure that it will be profitable. Some people make the mistake of buying a property such as land, just because it is a bargain. They become owners of the land, but because they do not have any plans for it, they do not earn any income from it. There are people who prefer to invest in homes and apartments. They repair the places, clean them up, fix them and rent them out to people. Some decide to resell the homes and apartments after renovating them at prices sometimes just slightly above the purchase prices.

� New Responsibilities- Although, having rental properties gives you the advantage of earning a constant income, the only disadvantage of having these properties to rent is the fact that you also become a landlord. This means that you will be responsible for anything involving the apartment. You have to conduct routine maintenance, take care of complaints, and fix what needs to be fixed. In reality, this isn�t what all retirees are looking for in an investment. Retirees want to live a comfortable life, free from stress, worry, and pressure. This is why many retirees seek investments which can be more easily managed.

Author: Joy Mali M