Where is Your Retirement Nest Egg Invested?

investment in real estateYou’ve diligently saved for a rainy day or retirement. Congratulations, but don’t get too comfortable yet…

Where is it Invested?

It’s estimated that more than 25% of Americans have their long-term savings in cash instead of investments like stocks, bonds or real estate.

Uncertainty Can be Costly

The memories of the financial crisis of 2008 are recent enough to understand why some people avoid the stock market and real estate. Even though Wall Street and housing have rebounded considerably, some uncertain investors are sitting on their cash. However, the fear of making a bad decision can have serious costs too.

Are You Keeping Pace with Inflation?

If your money is not earning at least the current inflation rate, you’re losing the purchasing power of your dollars. Bankrate.com estimates the average money-market deposit yields 0.11% and the average five-year certificate of deposit currently yields 0.78%.

Consider Single-Family Homes as Investments

Rents continue to rise, and there is a shortage of good, affordable housing. Single family homes have a significant advantage over many other types of investments. They have high loan-to-value mortgages available at fixed interest rates for long-terms on appreciating assets with distinct tax advantages.

Cash flow is considered to be one of the most attractive features of rental properties.

Some investors think of rental property as a growth stock that pays substantial dividends.

Example:

  • $125,000 purchase price
  • 80% loan-to-value mortgage
  • 5% interest rate
  • Rent of $1,250 per month
  • Positive cash flow before taxes of $3,000 a year.

investment analysis

The rate of return on rental property can be substantially higher than other investments, while allowing the investor control that isn’t available in alternatives.

Use our live calculator to conduct your own Investment Analysis, then let us know if you’d like help finding the perfect investment.

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