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Funding Retirement with Vacation Home Investment Income

24 February, 2018

Funding Retirement with Vacation Home Investment Income

The harsh reality is that stocks, bonds and mutual funds are no longer the best way to invest money for stable retirement income, due to ongoing stock market volatility that recently brought about the Dow’s largest one-day drop in history. Of course, we saw this coming and have been warning people about it for quite a while… But more importantly, we have a solution through vacation home investment that can be held in your IRA retirement account to provide steady retirement income, as well as a hedge against inflation and protection from stock market volatility. 

“Rental properties offer the rare opportunity to generate extra cash for post-work life”, wrote Bankrate. “Investors should focus on properties that generate positive cash flow of at least 6% (above costs)”.

One key to finding turnkey income producing property that can provide ongoing, stable retirement income is location, which goes hand in hand with finding a professional property management service to work with that can handle all maintenance, marketing and rental concerns. These two things are closely linked, since a better location equals higher and more consistent rents, but it’s unlikely that most buyers who would like to take advantage of vacation home investment income actually live in a high-demand location.

“To maximize income-producing investment, purchase property in an area short on rental homes,” wrote Realtor.com. “By short, we mean anywhere the market is so hot that rentals don’t stay vacant”. 

Funding Retirement with Vacation Home Investment Income

Also Read:

Betting on the Stock Market? Recent 4.6% Drop Should Be a Red Flag

How to Buy Real Estate with IRA Accounts to Generate Retirement Income 

Should I Invest in Real Estate or Stocks? A Must-Read for Investors

Obviously, this means popular vacation destinations are one of the best places to buy income producing property, but most ultra-hot destinations come with price tags to match, which effectively keeps many investors out of those markets. But in Mexico’s Riviera Maya right now, real estate investing offers one of the best ways to make money in any market, and turnkey vacation home investment properties are still affordable, especially when you buy property in an IRA retirement account. 

Why Invest in Mexico?

There are so many reasons why the real estate market in Mexico’s Riviera Maya is booming, but in part it’s because demand is still so much greater than supply due to rising tourism numbers, with no signs of catching up anytime soon. Stretching south from Cancun through Playa del Carmen, Puerto Aventuras and Tulum along the Mexican Caribbean coast, Riviera Maya real estate encompasses the best beaches in the world and owners benefit from rising tourism numbers year after year, as well as 80-90% occupancy rates. 

Funding Retirement with Vacation Home Investment Income - Why Invest in Mexico?

The Riviera Maya is also one of the safest places to visit and invest, with much lower crime rates than many U.S. cities, and it also offers modern infrastructure and fantastic return on investment of at least 8-14%, which is much more than you can expect to get from your 401k account over the next 10 years or more! Furthermore, vacation homes in Mexico’s Riviera Maya will never depreciate in value, but instead will increase more rapidly than real estate investments in other areas around the world, due to the sharp rise in demand this part of Mexico experiences year after year. 

No Worries, No Hassle Ownership 

The final piece of the vacation home investment puzzle is meeting the challenge of handling the day-to-day maintenance and rental issues that come with any investment property in a timely, professional manner that doesn’t negatively impact your return on investment. A great turnkey vacation home provider will completely take the stress out of owning a turnkey vacation home rental at a price point that doesn’t reduce your ability to turn a profit, while you simply sit back and collect ongoing, stable retirement income. 

Are you rethinking retirement and interested in vacation home investment? Tell us in the comments!

Read How Mexico Vacation Home Rentals Can Offer Great Investment Income to learn more about making money in Mexico real estate.

Topics: Real Estate Mexico Riviera Maya Alternative Investments