Rental Ownership: Bedrock of Retirement Security
By Neil Fjellestad and Chris De Marco
FBS Property ManagementÂ Â
Think the recession is over? Nearly three-quarters of recent respondents in southern California think not. Think that local real estate prices are going to take off again? Again, the majority believe maybe but not for years. Despite the current set-backs, San Diego is a great place to live but an expensive place to build. Nearly fifty percent of the areaâ€™s residents rent and will continue to do so even as the local economy picks up. So, regardless of whether real estate prices are at the bottom and will stay there; whether there are more reductions before prices come back; whether that comeback is fast and dynamic or slow and variable dictated by neighborhood, price range and lending policies here is a fact that you can take to the bank. San Diegoâ€™s mild climate and a healthy lifestyle will make your retirement (however you define it) as enjoyable as anywhere in the world. Rental ownership will finance your retirement prosperity.
Don't misunderstand. Investors have made mistakes owning rental homes and apartments even in San Diego. Here are the primary mistakes we and others have made:
Here are key factors for successfully turning your rental ownership into the bedrock of your retirement:
Â·Â Â Â Â Â Â Â Â Â Generally, rental property should be acquired, maintained, improved and held; never sold. Instead, periodically evaluate whether you should refinance existing property and purchase additional property but the end goal is rental ownership free of debt.
Â·Â Â Â Â Â Â Â Â Â Don't lose valuable equity to selling expenses. Rather, retire with the rental income and a reserve for contingencies.