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Are you looking for long term ROI?

Preparing for the golden years

 

We have some good news and some bad news. The good news is: Statistics show that we have a very good chance of living past 90. The bad news is: We may run out of money before then! Fortunately, there’s some more good news: It’s not too late for you to invest in real estate. Think about it. You’re working hard now so that you can enjoy your golden years. With a little planning now, you won’t have to worry later.

 

Times have changed

 

In the ’50s, some of the nicest homes sold for anywhere between $15,900 and $19,900. See any out there for that kind of money now? Of course not. The economy has changed and the kind of money that would have bought you a mansion in 1950 would hardly be a down payment on a ‘fixer-upper’ today. It’s important now, more than ever, to find ways to help your money grow.

Investment gurus consistently stress the need for taking “the longer view” when investing in stocks, bonds, or other financial investments. There will be highs and lows in any financial marketplace, to be sure.

 

 

Pathway to investment success

 

“When you find the pathway to financial success, do not stray from the path.” This advice appeared in an old guide to investing. While the pages in that paperback have yellowed, the message is still relevant today.

If you have prospered from retirement accounts, mutual funds, or special stock or bond opportunities, stay on that path. If you’ve prospered by owning real estate such as your home, a second home, or investment property, by all means, stay on that path.

If you haven’t found your pathway to investment success yet, maybe it’s time to explore the above average returns available on small investment properties. You may be surprised and pleased with the opportunities available, especially in California.

 

Saving money

 

Maybe you remember the days when making three percent on your savings was considered a good return on your investment. These days, with inflation and taxes each taking a bite, a simple savings account isn’t even considered an “investment” anymore. It’s more like a holding tank.

It’s time to discover the value of deferred profits. Don’t save your money, invest it! Did you know that you don’t have to pay taxes on the value earned through your real estate investments until you sell? (What a concept!)

 

 

Let someone else pay the bills

 

One expert defined investment as “curtailing your present standard of living in order to enhance your future standard of living.” Curtailing. That doesn’t sound like much fun, does it? But what if you could find someone else to pay 80% of the costs, while you pocket the profits from appreciation over the next 10-20 years? All of a sudden the definition of investment doesn’t seem so restrictive, does it? Finding someone else to pay the costs and pocketing the profits. That’s the way investment bankers do it.

 

Where will you be 10 years from now?

 

The fact is: There is no bad time to invest. And the best time to invest is right now. Why? Because each day that passes means that you could be missing out on some pretty substantial dividends. Look at it this way: If you don’t invest now, ten years from now you may have to listen to yourself say, “Why didn’t I invest my money ten years ago?” Don’t let time slip away. Now is the time to invest.

Negative cash flow is when you spend more money than you make. Given this definition, buying real estate with negative cash flow may not sound like such a good idea, but it is. Why? Because in seven to ten years, your property may appear half paid for while you’ll actually be breaking even or better. If you don’t invest in real estate, you’ll probably spend the money you could have invested on something else. And a boat or a vacation or a stereo system isn’t the kind of investment that turns a profit.

If you have questions on how to turn your negative cash flow into a firm foundation for your financial future, just contact us!

 

Contact

328 Healdsburg Ave. Ste. B Healdsburg, CA, 95448
(707) 331-4327
info@hutcheonpignigroup.com
Kim Hutcheon • DRE #01207046
Niccolo Pigni • DRE #02103177

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