Property or Pension
March 28, 2007 11:27pm CST
What is the best method of saving for you retirement. Do you spend your life paying into a pension or do you become a property investor? How have you ensured you will be provided for in what could now a third of your life as a non earner? Do you get a job at McDonalds? Do you rely on you parents dying so you can inherit! What have you done?
• United States
29 Mar 07
I am a real estate agent so, of course, I say...real estate but honestly...I believe that I am giving you good advice....be sure "THEY ARE NOT MAKING ANY MORE OF IT". Any commodity that has a limited supply (such as land) will be a commodity in demand. If you take a look at the prices that land sold for 5, 10, 25, 50 years ago....I guarantee that the value has increased. I realize that there are many factors that can affect the value of a property at different times....but if you can afford to purcahse property and sit on it without damaging the value...by that I mean if it has a residence on it...please keep it in good repair or you will loose money in the long run. Be smart and selective about the properties that you are interested in purchasing...look for the best (not cheapest) investment for your money. A reputable Realtor can be very helpful in assisting you with the choices available in your area...do not hesitate to ask questions that will affect land value...such as property taxes, location, neighborhood (this is a big one), local discussions about changes in the highway systems there, economy in the area, planned growth of the community and the amount of propeties that are available, as well as, the commonalities of the properties....what sets this one apart from the other one???? Did not mean to talk "shop" but it is a subject that I deal with daily and I feel that I at least gave you some ideas; should you shoose to invest in real estate. Of course, you should not wait for your parents to die so you can inherit....what a terrible way to think. There are too many ways to get ahead in today's world; if you "apply" yourself..."believe" in yourself....and do not "quit" on yourself. I hope that you realize the potential ramifications of thinking about someone else taking care of you when you reach the age where you can no longer work (inheritance).....because if you have kids...you do not want them to feel that way ....do you?
• New Zealand
29 Mar 07
Hey good stuff and thanks. I was really talking as a point of interest and being slightly ironic about the inheritance thing. I've paid into a pension all my working life, with Tex relief its actually between 12% and 17% of my wage. I now know that if I had used that cash to build a prperty portfilio I could have given up work at 50 with $$$$ to spare!! Why cant we be born with hind sight!!
29 Mar 07
Well, I think it depends on what you want to do when you grow up. Like if you'll be contented just to be by your other half's side, paying a visit or being visited by your kids and grandchildren once in a while, just the simple things, you'll get by with just your pension. If you wanna travel around the world, leave big inheritance to your children, you'll need to have investments and make as much as you could now. Personally, I would like to be able to visit my relatives in the U.S., visit Paris or Egypt once and then just do the simple things. We have this business that we can give our son when he grows up so as of now, we are working hard to make it really successful. Have other branches or expand the services that we offer.