Smart Retirement Strategy
Is Your Home An Asset Or A Liability?
Most people buy a larger home at some point. There is tremendous social
pressure to do this. It brings status, extra amenities, and a lot more space. It also
brings more expenses. While these costs may enhance your lifestyle, they do not
add to your wealth.
Instead, keep your lifestyle modest and leverage your existing home to buy a
rental property. You will be much farther ahead at retirement.
With two properties, you could sell the second one at that point. Use its equity to
fund your retirement. Or continue to enjoy the passive income it generates.
The renters will gradually pay down the mortgage on your rental property. Their
rent will rise yearly, keeping pace with the cost of living. Which means your
carrying costs