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How to Boost Retirement Income with Real Estate Investment

by Brent May

Retirement is a great time to explore new opportunities, especially the possibility of boosting retirement income with alternative investments. Because let’s face it, the cost and quality of living is only increasing. Many forward-thinking retirees turn to real estate investments in Mexico as it provides a barrier against inflation and offers a steady annual return on investment. This kind of investment is less volatile than others and outperforms traditional investments of stocks, bonds and mutual funds — especially with an up-and-down stock market.

Why Real Estate Investment ?

The advantages of real estate investment are many. You are ultimately in control to run your investment as you like: cut costs, renovate, choose new tenants or rent to the vacation market. You can choose to receive a monthly income or continue investing in your property through renovations and ultimately amplify your investment. Of course, the real estate market is subject to economic cycles but as you likely already know, Huatulco’s economy is continuously growing strong. The real estate market is rising.

Source: https://www.realcrowd.com/blog/2013/02/reasons-to-invest/

Real estate is a tangible investment. Unlike stocks and other types of investments, the tangibility of a real estate investment and acquirement essentially make that investment easier to analyze and quantify and in the end subject to less visible volatility. A real estate investment also can be a source of pride. It’s yours to care for as you wish and can generate a sense of satisfaction that intangible investments cannot. Real estate investments are also more insulated in an economically stable or growing region as is the case in Huatulco.

Keep in mind, though, that purchasing real estate investing isn’t for the faint of heart. It takes a whole lot of knowledge, patience, intuition and the necessary skills to do it right. Below are some tips to get you started, and if you want to learn more, we are always here to help you reach your goals.

Boost Your Real Estate Knowledge

Becoming a real estate investor is like taking on a new profession. It takes time to research the market and financial possibilities. Books, seminars and networking are great, but check out our real estate investment webinars for in-depth, Mexico-specific information that has helped us and others be successful — and profitable! Sign up for a live, free webinar with me and learn how to buy property in Mexico.

As your knowledge grows, you’ll begin to see opportunities bloom all around you. These can include purchasing ready-to-develop land, homes that can be remodeled and flipped, and properties intended for rental or commercial purposes. The first two offer one-time paychecks while the latter offers a steady flow of rental income (which can cover a mortgage and related expenses). Some investors gravitate to a particular type of investment, while others diversify their portfolios with one-time paychecks AND rental income.

In our experience, we find that rentals give our clients the best outcome. Not only do they get a steady income, but they are comforted by the fact that their property is in a high-demand location. Coastal and urban areas are particularly popular among nationals and tourists, giving them rental income from short- and long-term leases. 

Exercise Patience

It is important, though, to acknowledge that it may take some time (even years) to sell land or remodel a home for resale. Rental properties can also stand vacant until the right tenant comes along. So, you will want to be sure you are financially stable to hold out for profitability. Additional expenses can play into the mix, including taxes, renovations and recordkeeping obligations.

Consider the Local Economy

The current economy for an area of interest is incredibly important for investment selection. Consider the past, present and future of the area, and what it contributes regionally and nationally. Huatulco has a solid base of a master-planned community and here in Oaxaca, tourism is key to the local economy. Numbers have been increasing every year, and this is key to attracting other investors, as well as future buyers and tenants. Learn more: Oaxaca State Tourism Organization in Canada: Promoting the Beaches of Huatulco & Puerto Escondido. The state of Oaxaca has several other key sectors where investment and growth increasing. Read more about Huatulco’s growing economy here. 

Trust Your Intuition

Real estate investors know that location is important. This means that you know what areas are hot, what areas are not an option and what areas have the potential to grow into something you want to tap into early on in the game. To really get a feel for the present and future, you’ll want to familiarize yourself with the area as much as possible. This means knowing the neighborhoods, but also understanding the businesses that serve the area and the leanings of local government. Explore the “why” behind new construction and incoming businesses. Ask lots of questions and connect with others who have been repeatedly successful in your preferred investment location.

It was easy to trust our intuition when it came to investing in Huatulco real estate. This area has a genuinely different feel than other overly-developed coastal areas in Mexico, and the investment goes beyond the purchase of property. Our investment bought into the master-planned community, its developed infrastructure, overall safety and easy access to an international airport. Learn more: The Unique Huatulco Real Estate Market: 9 Reasons to Invest Now.

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