Zimmerman Group Chicago Area Real Estate Team
  • ABOUT US
    • Meet the Team
    • Testimonials
    • Local Events
  • BLOG
    • ALL BLOGS
    • FIRST TIME HOMEBUYERS GUIDE
  • RESOURCES
    • BUYERS
    • SELLERS
    • Buying and Selling in Riverside
    • Buying and Selling in the North Shore
    • Buying and Selling in Austin, Texas
  • PROPERTIES
    • FOR SALE PROPERTIES
    • RENTAL PROPERTIES
Menu
  • ABOUT US
    • Meet the Team
    • Testimonials
    • Local Events
  • BLOG
    • ALL BLOGS
    • FIRST TIME HOMEBUYERS GUIDE
  • RESOURCES
    • BUYERS
    • SELLERS
    • Buying and Selling in Riverside
    • Buying and Selling in the North Shore
    • Buying and Selling in Austin, Texas
  • PROPERTIES
    • FOR SALE PROPERTIES
    • RENTAL PROPERTIES
Homeownership,Investing,rental properties,retirement
/
July 29, 2021

How Homeownership Can Help You Retire Early

The Zimmerman Group

For many, early retirement isn’t about getting rich quick, it’s about “buying back your time.” That was the case for Akaisha Kaderli who retired at the age of 38. Using your home and your status as a homeowner is helping many ambitious individuals buy back their time and retire early. 

 

 

Buying Early Leads to Late Life Savings

 

If you’re hoping to retire early, it pays to plan ahead. The average retiree can expect nearly 35% of their annual expenses to go toward housing. This includes mortgage, rent, property taxes, insurance, and repairs. 

 

“If you’re able to buy a home in your mid-30s with a standard 30-year mortgage, by the time you reach retirement - or even early retirement (any age before 65) - you’ll have taken a big chunk out of this large expense,” notes Zimmerman Group agent Megan Ryan.  

 

The earlier you can buy a home, the sooner you can begin paying down your mortgage, proving homeownership is something Gen Zers and Millennials may want to pursue sooner than later.  

 

Downsizing Allows You to Cash in On Your Home’s Appreciation

 

As you close in on retirement you have the distinct advantage of selling your home and renting for less or downsizing for a smaller monthly payment. This is a chance to cash in on your equity by renting or buying a smaller, cheaper home. Then, you can use excess cash to offset your living expenses or provide some additional peace of mind for life’s unknowns.

 

Retirees Who Sell Can Tap Into Tax Advantages 

 

Your home is considered, in the eyes of the taxman, as a capital asset. That means it’s subject to capital gains tax. However, the Taxpayer Relief Act of 1997 made most homeowners exempt from this tax. Prior to the Taxpayer Relief Act of 1997 homeowners had to roll the entire value of their home sale into the purchase of another home to avoid paying this tax. 

 

Now, if you’re single at the time of your home sale you won’t have to pay capital gains on the first $250,000 of the profit and married couples are exempt up to $500,000. The Investopedia article Capital Gains Tax on Home Sales is a great resource for anyone looking for more ways to avoid capital gains tax. 

 

Using Your Real Estate Investment as a Rental Property is a Smart Bet

 

Investing in the stock market can yield big returns, however, as 2020 has shown us, the strength of the market is fragile. Real estate, when used as a rental property, is a more reliable long-term investment. 

 

History has shown us that, over time, home values appreciate even if the economy does not move upward at a steady pace. Again, we can look to 2020s trends for proof. Despite a sharp economic decline, single-family home and condo sales saw a 34.7% return on investment compared to the original purchase price which is up from 2019 and 2018. 

 

Additionally, rental properties, when used as investments are typically unaffected by inflation. Rents may rise, but your mortgage payment remains fixed meaning your income rises while our output stays the same. That’s more money in your pocket and one step closer to early retirement. 

 

Whether you’re days or decades away from retirement, homeownership can get you there sooner. 

 

If you’re wondering how homeownership can help YOU achieve something greater contact us today.

 

Let’s talk!

SHARE

Share on facebook
Share on twitter
Share on linkedin

Similar Blogs

moving to austin

Who Is Moving to Austin?

The Zimmerman Group May 17, 2022

In 2020, Austin boasted 168 net new residents per day. Even now, in 2022, Austin still ranks as the second fastest growing city (second to

good debt vs. bad debt

How Can Good Debt Help Your Financial Future?

The Zimmerman Group May 17, 2022

Debt. This little word often gets a bad rep. But what if I told you not all debt is bad? In fact, good debt can

Austin Summer Bucket List

Austin Summer Bucket List

The Zimmerman Group May 3, 2022

Looking for something fun to do in Austin this summer?  With outdoor adventures, tasty bites, and unique music venues, the only problem you’ll have when

kitchen remodel

Get Rid of These Kitchen Features Before You Sell

The Zimmerman Group May 3, 2022

Kitchens sell homes. Even a minor kitchen remodel can increase the value of your home. In fact, you can expect to see an average return

Buy or Sell Real Estate During a Divorce

Can I Buy or Sell Real Estate During My Divorce?

The Zimmerman Group April 8, 2022

Buying or selling real estate during a divorce can be a complicated endeavor. In the best of times, selling a home with a partner can

Hidden Costs of Buying a Home

Hidden Costs of Buying a Home

The Zimmerman Group April 8, 2022

The true cost of buying a home involves more than just the home’s list price. There are a variety of hidden costs of buying a

Austin, Texas Neighborhood Spotlight: Northwest Hills

The Zimmerman Group March 22, 2022

Northwest Hills is a group of subdivisions just a short commute from downtown Austin. Full of wildlife and winding streets, this neighborhood is ideal for

solar panels

Are Solar Panels Worth It?

The Zimmerman Group March 1, 2022

Electricity rates are on the rise. In April of 2021, ComEd filed for its first electricity delivery rate increase in four years. Rising electricity rates

Cat Mountain Neighborhood

Austin, Texas Neighborhood Profile: Cat Mountain

The Zimmerman Group March 1, 2022

Cat Mountain is located in the hill country of northwest Austin, Texas and it is one of northwest Austin’s premier residential neighborhoods. With steep forested

« Previous Next »

ADDRESS

  • 2211 N Elston Suite 104
  • Chicago, IL 60614
  • United States

TELEPHONE

(312) 600-6102
Keller Williams Realty Austin

ADDRESS

  • 1251-8 Research Blvd Suite 100
  • Austin, TX 78759
  • United States

TELEPHONE

(512) 346-3550

QUICK LINKS

  • BLOG
  • HOME BUYING AND SELLING RESOURCES
  • PROPERTIES
Menu
  • BLOG
  • HOME BUYING AND SELLING RESOURCES
  • PROPERTIES

ASK US ANYTHING

Facebook-f Instagram Linkedin-in

2021 © Zimmermangroup. All Rights Reserved. Website Design by Square 1 Group

SIGN UP
  • ABOUT US
    • Meet the Team
    • Testimonials
    • Local Events
  • BLOG
    • ALL BLOGS
    • FIRST TIME HOMEBUYERS GUIDE
  • RESOURCES
    • BUYERS
    • SELLERS
    • Buying and Selling in Riverside
    • Buying and Selling in the North Shore
    • Buying and Selling in Austin, Texas
  • PROPERTIES
    • FOR SALE PROPERTIES
    • RENTAL PROPERTIES
Menu
  • ABOUT US
    • Meet the Team
    • Testimonials
    • Local Events
  • BLOG
    • ALL BLOGS
    • FIRST TIME HOMEBUYERS GUIDE
  • RESOURCES
    • BUYERS
    • SELLERS
    • Buying and Selling in Riverside
    • Buying and Selling in the North Shore
    • Buying and Selling in Austin, Texas
  • PROPERTIES
    • FOR SALE PROPERTIES
    • RENTAL PROPERTIES