Have you thought about investing in real estate to fund and support your retirement?
This is becoming increasingly popular, especially as the stock market reacts wildly to global events such as the pandemic, inflation, and differing politics and policies. Real estate has long been seen as a safer, more reliable investment. Not only is there less volatility in the market, it’s also a tangible asset that means more than just money.
We love working with investors at every level. Some of our clients have been buying homes for years and have a healthy, profitable investment portfolio. Others have a few rental properties and are continuing to grow their portfolios. We also work with people who have never bought an investment property before, but they see the value in it as they start thinking about and planning for retirement.
We’re here to be a resource. As Golden, CO property managers, we have access to a lot of tools, resources, data, and expertise. No matter where you are in your investment process or your retirement planning process, we’d be happy to partner with you.
Why Should You Invest in Golden Rental Properties Now?
Buying Colorado real estate is one of the best investment decisions you can make, especially right now. It might seem like a bad idea with the higher prices and the competitive market moves. Everyone is selling and yet it still seems that the inventory is struggling to keep up with the demand.
Mortgage rates are still at an all-time low, and we will certainly see the rates rise in 2022. You’ll want to get in on the buying cycle before that happens. Take advantage of cheaper loan options and better borrowing.
There’s also the strength of the market, which is especially hot for investors. This part of Colorado offers a unique opportunity that investors cannot find elsewhere. When you buy a rental property here, you have the ability to earn rental income while your asset appreciates in value while you plan for your retirement.
Golden, Colorado Retirement Plans
It’s never too early to plan for retirement and secure a stable financial future.
Retirement is likely to last longer than ever before. Assuming you retire around the age of 65, you’re likely looking at a couple of decades at least to fund the lifestyle you have worked so hard to achieve. That’s great news if you’re prepared. Scary news if you’re not.
Taxes are a big part of retirement planning, and another reason that owning real estate can be so beneficial. There are lots of tax benefits that come with owning income-producing property, even as you’re required to report the rents you collect as income.
When it’s time to retire, a lot of unprepared people lose more than they expect to Uncle Sam. Retirement planning is crucial, and using the tax strategies that are available now through renting out a piece of property (or an entire portfolio) will position you on stronger financial footing when you are ready to retire.
It’s also worth noting that more and more people are choosing Colorado as a retirement destination. There’s a high quality of life, low cost of living compared to areas like San Francisco and New York, and plenty of recreation to keep active adults busy during their later-in-life years.
Here are some of the reasons why retiring in Colorado has become so popular.
- Retirees get tax benefits here. There’s a large deduction on all retirement income and property taxes are low. The average effective rate in the state is 0.57%. Additionally, food and medicine are exempt from sales tax. Colorado is considered to be tax-friendly for retirees, allowing a deduction of $24,000 per year on all retirement income for taxpayers 65 years old and older.
- Good healthcare is prioritized. Colorado has the second lowest obesity rate in the country and draws retirees from all over the country with a lifestyle that celebrates outdoor recreation and gorgeous, seasonal climates. Retirees in Colorado are surrounded by opportunities for fitness, as well as golf, skiing, hiking, biking, tennis, and other activities.
This increase in Colorado retirees means two things for you.
First, it means you’ll have a great pool of tenants when you rent your home out in Golden and the surrounding areas. Retirees who don’t want to own a home appreciate low-maintenance living and the freedom that rentals can provide. You’re likely to attract this demographic with your well-maintained, well-located rental home.
Second, it means you might buy and rent out a home here and then retire to it yourself. Out of state investors make up a large population of the people we work with. Maybe you don’t live in Colorado now, but you dream of retiring here. Buy your retirement home now, and rent it out until you’re ready to be a full-time resident.
Why the Golden, CO Real Estate Market Works
If you know you want to invest in a retirement home, but you’re not sure where you should invest, Colorado makes a lot of sense.
First, you’re buying valuable property in a large state that is growing in population and interest. There’s lots of culture, opportunity, economic diversity, and general happiness. A high quality of life can be found here, which is good for your investment potential and for your own retirement.
The home prices are still within reach, even in the market that’s as competitive as this one. You should also consider that home values in Golden and the surrounding communities are rising steadily. While you might find yourself completely priced out of the market in places like California and the northeast, Colorado has some great opportunities to spend less on your investment now and really watch the asset grow in value while it appreciates over time.
Depending on your age and your financial situation, it’s completely possible you could have the home paid off once you’re ready to make it your full-time residence.
Buying a home in Golden will allow you to secure a stable, passive income and set you up for retirement later. Let’s talk about how you do that.
The Formula: Buying and Renting
Everyone is in a different space and before you think about our buy-rent-retire process, you’ll need to establish some investment and some retirement goals. The moves you make and the properties you buy will largely depend on those goals, which are unique to you. Every investor has a different approach and a different desired outcome.
Retirement may be several years off or right around the corner. Wherever you currently find yourself, this is most likely the best possible time to invest. If retirement is several decades away, you’re going to have a lot of wealth already established when you’re ready to make a big life transition. If retirement has snuck up on you and you’re almost ready, buy now so you’ll have some income, some ROI, and if necessary – a retirement home to live in.
There is a lot of diversity in Golden, CO real estate. You can choose a modern condo or a private, spacious single-family home. There are HOA neighborhoods, new construction going up, and established communities where older homes are looking for love.
Think about your budget and where you plan to live when you’re ready to retire. Maybe you’ll want to be close to the airport because you plan to travel frequently. Perhaps you’re hoping for frequent visits from the grandkids, so you’ll want to be close to the theme parks. There’s a lot of choices in Colorado, and you’ll want to explore all of them.
You’ll want to think about what makes money as well. When choosing a Golden investment property, make sure you’re buying in a desirable location. Don’t waste time and resources on a low-dollar home that needs a lot of renovations. For your purposes, a home in great condition that can be rented out right away will work best.
Partner with Professional Golden, CO Property Management
If you’re not sure you have the time, expertise, or personality befitting a landlord, don’t worry. With a professional Golden property manager leasing and managing the home for you, there’s very little to worry about. A good property manager will help you price your rental home, prepare it for the market, find a great tenant, and take care of any routine or emergency maintenance issues.
You can also plan for retirement better when you have a property management partner helping you. It will be your best resource for understanding market trends and tenant demands.
Investing in a Golden rental property means you can have someone else help you pay down the mortgage on your future home. That’s not a bad deal, and we’d love to help you take the steps towards making this plan a reality.
Think about buying, renting, and retiring as the next step towards strengthening your financial future.
We’d be happy to tell you more about how we make this work for so many clients. Contact us at Laurel Property Services, Inc. In addition to providing property management in Golden, we also serve Wheatridge, Morrison, Lakewood, Arvada, and Genesee, CO.
