Here is a shameless plug for owning real estate as a means of planning for retirement. Whether a SFR or two, condos, or, for ease of management, commercial properties, the multitude of advantages are just about unbeatable.
We all know about the tax advantages: depreciation allowances permit you to lower your tax bracket from your regular income. Inflation allows you to use the lower capital gains tax rate when you decide to sell, which you can conveniently time to happen in your retirement years.
Your equity buildup over the years of ownership can be profound–both from paying down the loan and the (presumed) appreciation in property values. Together they may enable you to sell a free and clear property upon retiring or during retirement.
Yes, there are hassles to being a landlord. In the early years there is little cash flow and it is sometimes negative. There is a learning curve to both maintenance headaches and minimizing tenant hassles. But as you learn more the cash flow gets better. Most of all, beneath the surface, forced saving is occurring on your personal balance sheet. You learn to be frugal because your job income and property income demand it. Meanwhile you are quietly getting rich.
