Most real estate investors are always afraid of their property depreciating immediately after retirement. They are worried over depending on the property after retirement, and they still think of buying more houses to supplement their retirement income. It is a good idea, yes, but will it work? What about the mortgages and all other costs that come with home-ownership?

However, most true real estate believers suggest that having a possible real estate range will work for you after retirement. According to Brian Dally, CEO and co-founder of Groundfloor, real estate investment typically outperforms all other private investment since it is less volatile.

This means playing your card with property ownership can supercharge your retirement income, and you will live a happy life after that. But, how can you change the rental housing investment to enjoy incredible income? This article will look at some simple ways you can use your real estate to boost your revenue even after retirement.

Real Estate Investment Trusts (REITS)

REITs are the publicly traded mutual funds that own commercial, residential, industrial property, or mortgage securities. They act in place of investors and pass the rental income, profits from the sold properties, or payments received on loans in mortgage-backed securities. As an investor thinking about supercharging your property income, you can join the REIT instead of stocks and bonds. REITs produce capital gains, although the main point of attraction is the steady dividend income. Do you need more help? Reach out to Bugis Credit for useful articles about REITS investment.

It is a trick of avoiding taxation at the corporate level since they pass almost 90% of the earnings to the shareholders. According to NAREIT, there were 220 equity REITS and 41 mortgage REITs at the end of 2017, including Ares Commercial Real Estate Corp (ACRE), making at least 8% from the industry. However, like any other investment, REITS prices are likely to fall when interest rates rise. This makes older investors less generous than newer ones. Therefore, they are favorable for investors ready to wait for the comeback and have other assets like stock and bonds.

Direct Ownership

As a working individual thinking about having a steady income flow after retirement, you can invest in a rental property by buying a property before retirement. According to Mark Painter, the CEO of EverGuide Financial Group in Berkeley Heights, you can magnify real estate returns and boost your retirement by using income-oriented real estate and leveraging. He suggests that any investor should only borrow half of the investment cost on the property. This way, the investor will double the profit realized from the investors, although with some risks.

However, the investment property should earn at least 6% a year if you want to enjoy a steady income. This means rents and other income must bypass the mortgages and maintenance costs. Mark Painter also insists that the right rental property is all about location. Therefore, finding the best property that earns at least 6% is the best way to boost your retirement income and help you avoid all the challenges that the rental housing market may face.


Lately, several firms offer new investors chances to buy shares in specific real estate markets, including flipping individual houses or fixing up business space through crowdfunding sites like Groundfloor. This can be a great way to generate income from the rental market since you only need a minimum of $10 for Ground Floor or $5, 000 for RealtyShares, depending on the property’s value.

In crowdfunding, investors are allowed to select among the listed properties vetted by the investment firm. The list includes the estimated income and the website’s capital returns, although the values are not guaranteed. Therefore, it acts as an alternative to searching for an investment opportunity, and the investor is only required to buy a small amount of share in an individual property. With crowdfunding, you can quickly spread your money on different projects and reduce the investment risks.

Tapping Equity in A Home

Another secret of boosting your income after retirement is tapping the equity in your home. This means increasing your income by reducing the costs of the house or paying off your mortgage. Tapping equity in a home includes downsizing, selling the current home to buy a cheaper one and saving the balance. Additionally, moving out could also reduce property tax and maintenance costs. The good news is that couples filing a joint return of up to $500,000 on a sold home are not eligible for federal tax.

Furthermore, several governments are debating if appreciation in market inflation’s property price could not be taxed. This means that if your home has surged in value over the years, you will benefit from such a tax cut. Therefore, although downsizing your home could be attributed to other reasons, reducing the home maintenance expenses is the main reason. It also allows you to pay off your debts and save the rest for retirement.

Hacking Your Home

Depending on your home’s size, and if you live alone, you can decide to rent out a part of your home to generate income. You can use the extra income earned from your roommate or renter to pay for the home or invest in other places. This is the easiest way of supercharging your retirement income since it does not require much involvement. All you need is to rent out space so that it will preserve your capital, capture tax benefits, and scale your home in the appreciation position for higher values. Doing this for two to five years, you will have multiple investments and cash flows streams that will make your retirement a comfortable life.

Paying Your Mortgage Off Early

One of the enormous expenses that most retirees face after stepping out of their careers in the mortgage. If you are not keen, the mortgage is likely to pin you down on your job and even eat up your retirement income if you don’t address it earlier. In the old-age, you meet people financing their mortgages their whole working period. Others could even retire with five or ten more years still on their home loans.

This is one challenge that would make you live on debts and never enjoy your retirement income. Therefore, to supercharge your payment, you have to pay your mortgage earlier before retirement. Paying off your debts on time slashes down your future expenses and increases your cash flow.

Estate Planning Is Key for Safeguarding Real Estate

Estate planning is an essential strategy for safeguarding real estate assets. This ensures your properties will be managed and distributed according to your wishes after your death. Establishing a legally-binding estate plan can protect your heirs from unnecessary stress or financial strain. One effective method is creating a living trust, which bypasses probate proceedings while giving beneficiaries direct access to their assets immediately. An estate plan can reduce estate taxes, providing your heirs with maximum value from their inheritance. Consult a specialized estate planning attorney for help creating an effective plan tailored to meet your specific needs and safeguarding real estate investments effectively.

The Bottom Line

In conclusion, when you are thinking of how to retire peacefully, always formulate a working plan to maximize your cash flow. Real estate investment is an excellent way to supercharge your retirement income and have a happy life after that. However, before deciding on any retirement plan, always make a comprehensive research on every investment opportunity to reduce risks.