There is hope! Reconsider your options. Have you heard the phrase "Don't put all your eggs in one basket"? So, the financial advisors who make their income by having you invest in their firm will surely explain that is the perfect reason to invest in mutual funds. Although that might be sound logic, it's by no means the entire picture. You might want to seriously consider investing in Real Estate. Real Estate when purchased correctly, remember the phrase "Location, Location, Location", can be a vital tool for any retirement vessel. Did you know that many mortgages on properties in most Maryland counties are currently lower than their corresponding rents? Do you realize that the tenant pays your mortgage while putting extra money in your pocket. That is the passive income that everyone is looking to achieve or required for retirement. As your tenant pays down your mortgage, the rents continue to rise. By the time you own the house outright, you have a significant amount income per month with only one rental. While there are tax implications, so you should also consult your accountant, the investment could be an attractive alternative. Let's look at the figures.
In a hypothetical case, but one that I could duplicate today, an investor can purchase a townhouse in a neighborhood with no HOA. Let's say you purchase it for $300,000. Most lenders will require a 25% down payment (there are other options to this) So, your down payment would be $75,000. Let's say including closing costs, your total investment is $87,000. At the same time, a 30-year mortgage on this property including taxes would be about $1600.00/mo. A townhouse that fits this scenario would probably rent for $2100.00/mo or $500.00 extra in your pocket a month, $6000.00/yr. That is roughly 7% per year. As rents increase, that number will grow. Once your mortgage is paid off, not only would you have $2100/mo to spend as you wish, you will also have an investment property that with moderate appreciation would be worth approximately $600,000! The return on your initial investment is phenomenal. Don't have that much to invest? That is okay too. Let's have a conversation. There might be other ways to make it work for you. Real Estate could be a gold mine, hop on board, we will show you how to 'dig in'! Call us today! 443.386.1306