How to Allocate Less than Half of Your Funds to Housing

November 27, 2015 by  
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Housing is arguably the most expensive purchase that you will make in your lifetime. That being said, there are certain budgeting techniques that can be used to minimize the risk of a financial fiasco. To live comfortably, you should allocate a certain amount of money towards your housing expenses. Typically, 30% of one’s monthly income is recommended as it leaves room for comfort.

Downsizing is a good opportunity to catch up on late payments or to just give you some financial breathing room. If you have excess bedrooms and have decided that renting them out isn’t your thing, then seek out a smaller-sized property that provides all of the basic amenities that you are accustomed to but at a cheaper price.

By cutting down your housing expenses to 30%, you can experience an increase in cash flow. The remaining 70% can be allocated towards transportation, savings, debt, emergency funds, and the miscellaneous purchases that you’ll have to make. Why worry about your finances when you can control them in a proper manner? Keep in mind that there are inevitable incidents that are going to occur in your life that will require you to spend quite a bit of money. If most, or all, of your money is going towards housing, then it leaves very little wiggle room to take care of those expenses.

By increasing your savings and decreasing the amount of debt in your life, you’ll be able to put a lot more money into the enjoyable things in life like: hobbies, travelling, personal projects, etc. You shouldn’t have to live under the constant fear of debt. By aiming for a reasonable goal and lowering the amount of expenses towards your housing costs, you’ll slowly build up a financial blanket that will allow you to live comfortably.

Bio: Kuba Jewgieniew is the head of Realty ONE Group, a real estate brokerage firm that empowers their employees to succeed by providing the necessary tools and knowledge to propel them in their careers.

Investing in Real Estate for Older Investors

November 2, 2015 by  
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Investing-in-Real-Estate-for-Older-InvestorsWhen it comes to retirement investing, you have less room to gamble – especially if you are retiring within the next 5-10 years. Owning real estate has proven to be great for diversifying your portfolio and providing solid returns. It’s a low-risk option, which is great for older investors with a safe outlook.

Owning real estate is great for passive income. By hiring a property manager to handle the tenant’s needs, you won’t actually need to physically be there. The monthly rent that is coming in should outweigh the expenses being put out, such as insurance, taxes, etc. Passive income has often been underrated and can provide an excellent source of income.

Real estate investments, historically, have brought great ROI to investors. Having a balance of low risk real estate with the high volatility of the stock market can end up providing some solid returns back to you.

With high-net investors becoming more and more interested in real estate investments to provide that cherry on top of their portfolio, you’ll often see older investors seek out a plethora of properties to buy. Many high-net investors will look into residential real estate properties as they are the most in demand, followed by development land.

Before you jump straight into real estate, it’s important to understand how the market can fluctuate – don’t be surprised to see sudden dips. But with a safe approach and being how low of a risk real estate is, you can have a financial safety blanket in your portfolio by looking into this route.

Bio: Kuba Jewgieniew is the CEO of Realty ONE Group, a real estate brokerage firm with branches located in California, Nevada, and Arizona.