Is Real Estate Still a Good Investment for Retirement?

ALISO VIEJO, CA, October 06, 2010 (Press-News.org) Everybody knows that a secure and comfortable retirement requires smart investing.

According to Gallup's annual Economy and Personal Finance poll, the majority of Americans still thinks real estate is one of the best long-term investments.

"Homes have become much more than just places to live," says Steve Dexter, co-author of the new book "Buy & Hold Forever: How to Build Wealth for the 21st Century." "Real estate is, without question, the most valuable asset in millions of Americans' retirement portfolios."

In the book, Mr. Dexter and co-author David Schumacher reveal investment techniques that can work in the midst of a slow real estate market or a booming one, for first-time buyers or seasoned investors, and for buyers of single-family residences, apartment buildings or shopping malls.

"Retirement plans are by nature long-term investments, and so is real estate. That's why they generally work very well together even in bad markets," says Mr. Dexter.

Many experts believe that homeowners who keep properties for seven to ten years are more likely to recoup their homes' lost value even after the worst market busts.

Just what makes a home an investment? The key is value—what the property can be worth by the time you retire. Here are some points to consider:
• Will the mortgage be paid off by the time you retire?
• Will there be a second mortgage or debt on the home?
• Does the home have unique features or a great location that will add to its value as time goes by?
• Did you buy the home at a low price so that you can maximize your profit when it comes time to sell?

"The way to secure your financial future is to buy a house, live in it, and sell it later," says Mr. Dexter. "And for many people, this might be the best time to buy unique properties that were not previously affordable."

About the Authors
DAVID SCHUMACHER, PhD, was an investor, magazine columnist and college instructor in the field of real estate. One of America's premier experts, he was also a multimillionaire property owner. He parlayed a modest investment into property holdings worth $20 million, including houses, condos and magnificent oceanfront apartment complexes in Southern California. He also authored "The Buy & Hold Real Estate Strategy" and "Buy & Hold: 7 Steps to a Real Estate Fortune."

STEVE DEXTER is the president of National Capital Funding, based in Laguna Beach, California, and an expert commentator for CNN/Money, CBS Radio and Fox TV. He is the author of "Real Estate Debt Can Make You Rich" and "Beat the Banks: How to Prosper from the Rising Wave of Bank Foreclosures."

For more information, contact Steve Dexter at stevedexter@hotmail.com.