VR Logo

Can I use rental income to pay for my retirement?

Dhirendra Kumar identifies 4 pain points one may face with rental income

Is rental income a good mode for providing for retirement?

Yes, but you will have to worry about a number of things.

  1. Ticket size is big. typically, a house accounts for a large chunk of your money.
  2. You have to worry about periodic vacancy. Tenants will come and go, depriving you of income.
  3. You have to look after the maintenance of the property.
  4. You also have to be lucky with the location of the house you have put on rent. On the other hand, rent gets inflation-adjusted and you get real estate appreciation.

Also, with rental income, you are managing a property yourself. With mutual funds, you can delegate this to professionals and achieve effective diversification.

Post Your Query