Retirement is not the end of a career or the beginning of the rest of an idyllic life. It can be a switch from one type of life to another. It may also be a state of continuance but with financial independence and no liability whatsoever. Regardless of how you perceive retirement, at what age you wish to hang your boots and how much money you want to have in your bank, property investment can always be a rewarding option. The goal is not to have enough money in the bank. That objective may be elusive for no one knows what would be enough. It is only a perception based on individual assessments of present scenarios, expecting a certain future and making some broad assumptions.
There are many ways to approach property investment. Some are complicated and often discourage new and relatively inexperienced investors. No one starts with a portfolio of even ten properties. Everyone starts with one property, unless she or he is an heir to a billionaire investor. Even such heirs would start their own portfolio with one property. The simple property investment strategy to fund retirement is to understand the basics, keep things uncomplicated, to have pragmatic goals and then do a back calculation to ensure all liabilities are taken care of before having a sustainable passive income to live off for the rest of your life.
Let us presume a scenario wherein you think your monthly expenditure would be ten thousand dollars in ten years time. If this is the passive income you need so you can retire, then you should calculate how many properties you need to rent out to generate that revenue and that is your objective. The second aspect of this strategy is the timeframe. How long do you need to purchase the required number of properties, how soon can you pay them off and then enjoy the revenue as the source of passive income and by when can you truly be in a state to fund retirement. These are rather simple calculations. There is no complexity that should discourage anyone. The whole process is methodical. You are to take one step at a time and then keep building your portfolio to the extent necessary to fund retirement. You can keep growing your portfolio or simply hold on to your assets.
This simple property investment strategy will only work if you have a frugal lifestyle till you have enough money in your bank and a substantial monthly income to fund your indulgences. The property market is not one that would respond exactly the way you want throughout the year. The swings aside, there will be lulls and there would be booms. You must make most of the booms and stay afloat during the lulls. Only a frugal lifestyle, some austere measures and an astute financial sense would be able to power you through the initial years. The simple property investment strategy to fund retirement will work for anyone who has the intent and clarity of vision.
About the Author
Morris Edwards is a content writer at CompanyRegistrationinSingapore.com.sg, he writes different topics like Things to Consider Before Making a Property Investment in Singapore, 62% of Singaporean Firms Plan to Increase Global Investments and all topics related to Singapore Business and Economy. If you want to learn more about Singapore Company Incorporation and Business Setup Call us or visit our website.
Company: Singapore Company Incorporation Consultants Pte Ltd
Address: 10 Anson Road International Plaza #27-15, Singapore 079903
Telephone: +65 66531211