The stock market as a subject to the daily extreme swings due to economic data globally, terrorist attacks, various dictators and their never-ending power grabs that reflect currency problems and export/import issues is not the place for someone’s hard to earn money over the age of 50.
Diversification into various asset groups in the commercial real estate sector such as triple net income properties assisted living, apartments, student housing, storage, medical office, and warehouse buildings is a far less risky place for long-term passive income along with growth.
The necessary asset groups for future dollars spent, which are part of the commercial real estate sector, are where the average citizen has to utilize the services and sectors as the categories mentioned above illustrate.
Examples:
- When all of us get to a certain age or health condition, an assisted living facility is the end result. To get ahead in a job college along with student housing becomes a necessity.
- When large Internet companies like Amazon need to store and distribute products sold to their ever growing customers, warehouses are the answer; nothing can take their place.
The health of our citizens requires medical office buildings to allow our doctors to treat their patients. When more people cannot afford homes or qualify for a house loan, apartments are the only viable option. These apartments have little room for storage this increasing the need for separate storage facilities around the country. Those investors that are unable to manage, lease and fix their income or investment property can select quality triple net properties where the tenant is responsible for everything.
The assets from the commercial real estate sectors above are not optional like a fast food meal or buying another outfit at your local retail store but have become necessary in order to maintain your family’s health and welfare. Steady, dependable income and growth without the uncertain effects of the up and down gyrations of the stock market is the best choice for the investor that is older and wants to preserve capital along with gaining passive income.
Five to seven percent returns along with depreciation tax benefits and growth will most likely be your end result. Within a few years, the increase in rents and the valuations of the real estate will most likely lead to higher returns ending in a capital gain when sold which then the tax can be eliminated or delayed by a 1031 exchange to a different investment property.
IRA money can be utilized to gain the same results as your daily spending dollars can earn. Open your mind to the commercial real estate sector and reach out to our professional at Westwood Net Lease Advisors in order to understand your many options.
