When I was still a fresh college graduate, all I could ever think about is how easy it would be for me now to buy what I want with the money I get from my salary. Not one of my colleagues or friends ever talked to me about investments – let alone planning your retirement. All we ever thought about is when and where should we travel next, going shopping and other fun stuff such as that.

As we grow old, our priorities change. When we are young, all we can think about is when and how we can buy that new iPhone model, shop for newly released fashion items, get that new tech gadget, or when and where can we take the next vacation to the tropics.

However, as we grow old and our responsibilities start to pile up, that is when we also start to realize that we should have invested in things that truly matter. Investing at a young age may not be trendy for many young people (or millennials) at the moment, but it is actually a practice that should be adopted if any of us want to retire early or retire without any worries in the future.

This is also what happened to me, or what I realized rather, after a few years as a regular employee. Only my mother actually opened up about the topic of investing and retiring because she already saw how some of her friends were dealing with financial problems after retirement. She said that if we constantly blow our income to stuff that is “fun” and “trendy” as of the moment, we will not be enjoying ourselves once we reach the age of retirement.



The moment you think your career has reached a certain stability, it is time to think about making plans about retirement. The earlier you think about it, the better – because young investors always have time on their side. And even if you can only manage to invest in small amounts, the amount of time done for the investment gives it more room for growth.

Aside from savings and stock investments, you can also get real estate as part of your retirement plan too. In fact, it should be one of your priority investment. Why? Below are five reasons as to why this is so:


  • It can be a source of passive income.


Time and time again, many financial gurus tell their clients that rentals are a great way to earn extra income. This stream of income comes in really handy when you are already retired because your monthly salary by that time is already out of the picture. So even though you don’t have a steady income already by way of monthly salary, the rental fees you get each month from your real estate properties can still support you and your family’s needs. Aside from that, you can also opt to sell your real estate property if you urgently need extra money to fund a business or any other big purchase.


  • Real estate is always a good investment, it will never go out of trend.


Unlike other forms of investments (such as in business and stocks), the real estate industry is and will always stay relevant. Sure, it may experience some dips like what happened during the 2008 recession, but the need for real estate will never go away.

People need the real estate industry to create homes, offices, buildings and establishments as we usually know it. Real estate also involves immovable properties that can either be subject to agricultural activities or converted into a commercial lot. Real estate will always be around, though ownership could change from generation to generation.

No one is also stopping you from moving into one of your real estate properties once you have already retired. This investment is not just about making money through rentals, but it could also be for your own enjoyment too!


  • Real estate properties rarely depreciate in value.


Since there is basically a stable market for real estate, these types of properties rarely depreciate in value. Their rates usually go up,especially when the location has become a business district or had become close to a business district.

Of course, its value also goes up if you introduce improvements to it – but the value would also go down if the property is not well-maintained (like there are numerous plumbing problems, cracked walls, and etc.).



  • It is a great way to diversify your portfolio.


It is grand to have real estate properties included in your retirement plan as early as possible, but this does not mean that you only have to focus on these types of investment. Sure, it is a great way to diversify because it is one of those long-term and ‘traditional’ type of investment – meaning, it is safe and you could never go wrong with it. However, it would not also hurt if you also put some of your investments in high-risk bonds, stocks and the like. As much as possible, you should incorporate different types of investment in your retirement plan so if ever one aspect is not doing well, it would be offset by the gains of the others.


  • Real estate properties are good assets to pass on.


Unlike other types of investment, a real estate property is something that you can actually pass on to your heirs. You can even donate it to other people if you like. Real estate is deemed a more valuable inheritance because the heirs can also make use of it as an extra source of income.

Overall, a retirement plan should always include a real estate property because it basically represents stability and timelessness. If you truly want to invest in a property that can withstand the ever-changing needs of a market, or survive the unpredictable law of supply and demand, you can never go wrong with a real estate property on your portfolio.

It does not have to be used as a rental place for you to gain extra income when the time comes, but you can also personally use it as a permanent home after you have decided to retire from work and the daily stresses of the city life. (that is if your property is located in the suburbs or countryside)

RELATED POST: How to Build a Retirement Nest Egg Through Property

About the Author

Gemma Reeves is a seasoned writer who enjoys creating helpful articles and interesting stories. She has worked with several clients across different industries such as advertising, online marketing, technology, healthcare, family matters, and more. She is also an aspiring entrepreneur who is engaged in assisting other aspiring entrepreneurs in finding the best office space for their business. Check out her company here: FindMyWorkspace.

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