The Buckets of Money® Retirement Solution: The Ultimate Guide to Income for Life

Chapter 8. Play It Smart When It Comes to Personally Owned Real Estate

Most of us own one home, and if we are blessed, maybe we have a second one as a vacation retreat. Many folks have watched their homes appreciate over time, and thus they have a bias toward personally owned real estate. But that, of course, begs the question: Is a home or vacation retreat a good investment? If so, where does it fit as part of your retirement plan? And should you buy more personally owned real estate as a way of expanding your wealth in retirement?

Real estate can be attractive for numerous reasons. One reason, of course, is that it includes land, which is in limited supply. Usually that land also includes buildings that cost more each year to build or replace. As the cost of construction increases, so does the value of well-maintained buildings. In addition, real estate has gotten hammered over the past two or three years, so bargains abound for someone with enough savvy and cash or financing.

This chapter will discuss topics one rarely finds in financial books: first, options for dealing with your current home, from refinancing to paying off the mortgage to taking out a reverse mortgage. Then we'll consider whether acquiring additional property is a viable way to add to your long-term retirement assets.

Your Home and Your Future

Is owning the home you live in your best investment? Or would it be smarter to rent? To make that determination one must place an economic value on some of the ancillary ...