9 Reasons Why Retirement Is the Perfect Time To Start Real Estate Investing

Real estate investing is a powerful way to start building another income stream and diversify your current portfolio. But it can take time and dedication to turn it into something truly lucrative.

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For many people, investing in real estate is neither feasible nor the wisest decision during their working years. But if you’ve retired, now might actually be the best time to get started.

Here’s why you should start investing in real estate once you’re retired rather than before, according to industry experts .

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You Have the Funds

When you finally reach retirement, chances are you have a lot less debt, a decent nest egg and know how to live on less. This means more cash that you never had before and can now use on real estate investments.

“You finally have the funds,” said Kathleen Peddicord, CEO and founder of Live and Invest Overseas . “You’ve worked for the past several decades and built up a nest egg. Real estate can be a great investment that brings in cash flow and capital appreciation. This can even help fund your retirement.”

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You Have More Time and Patience

When you retire, you generally have a lot more time for the nitty-gritty of real estate investing, including owning, renovating and managing rental properties and tenants that can bring in regular profit.

More than that, you have the time needed to make sure you’re making the best decision possible.

“When you retire you usually have more time and patience to manage and research investments which can result in smarter real estate decisions and better returns,” said Chad Breeden, the owner and founder of Sentry Real Estate .

Once you’ve got even one or two rental properties, you can then start generating a reliable passive income stream. If you need to supplement your fixed income, pension or retirement savings, this extra cash can go a long way to doing just that.

You’re Seeking More Flexibility

Just as you might need more free time and flexibility to truly dive into real estate investing, purchasing properties can give you more flexibility in retirement.

“Owning investment properties offers a lot of flexibility,” Breeden said. “Whether it’s relocating to another area or downsizing, real estate provides both financial growth and many more lifestyle options.”

It Could Keep You Engaged and Active

Extra cash can already be a great incentive to start investing, but there are other reasons to purchase real estate in retirement.

“It can simply be a great ‘hobby’ or activity to keep you engaged while also generating supplemental income to support your retirement,” said Paul Gabrail, an avid real estate investor, founder and host at Everything Money .

The Returns Could Be Higher

If you’re looking for higher returns on your investments in retirement, getting started with real estate could be a smart move, too.

“Real estate reliably appreciates at a similar (sometimes higher) rate compared to other common retirement assets, and you can reinvest the passive income you generate,” said Nathan Miller, president and founder at Rentec Direct . “Compared to other assets, real estate can be less volatile and more resilient to market fluctuations, which means more consistent and reliable earnings.”

This is something that could benefit even non-retirees. But when you’re no longer working, you have more time to dedicate to your rental properties and capitalize on those returns.

There Are Tax Benefits

“Investing in real estate can provide tax benefits as well through write-offs to offset any other income,” Gabrail said. “This means more money in your pocket during retirement.”

Be aware that real estate can be more complex to pass on to your heirs. But as long as you’ve planned for that, it could be a lucrative addition to your retirement life.

You Can Build a Legacy

You may have already started this earlier on in life, but why stop building your legacy once you retire?

“Possibly, one of my favorite reasons [to invest in retirement] is because your real estate investments can become part of your legacy,” Gabrail said. “They can be something you pass on to your kids or grandchildren.”

You can do this with your descendants and their descendants, too.

“Start building the portfolio and allow them to get involved,” Gabrail said. “This will provide them an opportunity to help you manage your real estate investments while also teaching them the process so that they can build on the portfolio after you pass.”

You Can Be More Hands-On

This one goes hand-in-hand with having more time, but waiting to invest in real estate until you’ve retired gives you the opportunity to be more involved with your properties.

“If you want to invest in real estate by renting out a property (including turning a portion of your home into a short-term rental like an Airbnb), it can be a smart move to wait until retirement from a time perspective,” said Seamus Nally, CEO of TurboTenant .

“Having properties takes time and effort, and while you can certainly utilize a property management company to take care of most of the logistic and day-to-day duties for you, many investors want a more hands-on role so that they can earn as much money as possible,” Nally continued. “When you are still in the workforce, being fully hands-on often just isn’t realistic because you don’t have the time availability to do that. But, once you’re retired, you do!”

You’re No Longer Location-Dependent

If you want to live overseas, retirement could also be the perfect time to start your real estate investment portfolio for a multitude of reasons. Not only are you no longer tied down to one location because of your job, but this type of investing could give you more purpose in your retirement years.

“Overseas real estate can give you purpose,” Peddicord said. “Transition from your working life to retirement can be jarring. Suddenly the thing that determined every day’s structure is gone. Buying property in another country can help fill the void that wrapping your career created. Depending on the type of property you buy, it can give you a lot to do.”

Peddicord added that purchasing property overseas can also protect you from certain risks you might face back home — at least in the U.S.

“Buying real estate in another country moves a chunk of your assets outside of the U.S. and into a different market in a different country (maybe in a different currency),” Peddicord said. “If you’re concerned about your retirement account and the future of the U.S., it’s crucial to diversify, and a property purchase in another country can achieve this.”

This article originally appeared on GOBankingRates.com : 9 Reasons Why Retirement Is the Perfect Time To Start Real Estate Investing