It may be that such a way of life is the fruit of a lifetime’s work. To achieve this dream, you will need to be rigorous, combative, and calculate your techniques well… You will also need to know how to take risks and identify the professions that will allow you to achieve this objective.
We can define that a person who lives from his rental income or real estate annuitant. As a person who periodically receives income from the capitalization of real estate. A real estate annuitant aims to acquire real estate in order to generate rental income that will enable him to meet his daily needs. In principle, an annuitant can live perpetually on the rental income of his real estate assets.
Of course, it will be necessary to invest in the rental! In addition, several solutions can be adopted to generate rents through real estate investments. You can make an investment in empty rental, furnished rental, seasonal rental, commercial space rental, office rental. Renting in Saint Martin & Sint Maarten offers you many possibilities for real estate investment.
To start investing in rental property, you will need savings of between 5% and 20% of the purchase price of the property and, if applicable, be eligible to obtain a mortgage. To live off your rental income, the more savings you have, the more you can invest and the sooner you can live off your rents. Be careful, the goal of saving a substantial amount should not have an impact on the quality of your daily life…
To determine the amount to invest, you must refer to your monthly income. All you have to do is deduct the amount covering your current expenses and set yourself the goal of saving the difference between your monthly income and your current expenses. The duration of this savings can be between 5 and 25 years depending on your objectives and the amount of savings you wish to make.
The sufficient amount that the saver needs to make a real estate investment and then become an annuitant will depend on his personal and financial situation. What is sufficient for one real estate investor may not be sufficient for another. Then, the budget needed to live on rental income will also depend on the ambition of each investor.
The time needed to live on your rental income may depend on the profile of the real estate investor, his financial situation and his objectives. It is therefore impossible to define a precise interval to become an annuitant thanks to rental investments.
However, it is essential to start early to build up as much capital as possible, as it will take you about 20 years to have enough time to save and free yourself from any liabilities to the bank. It will also be necessary to establish an investment and long-term plan.
Investing in real estate can allow you in the long term to live off your income, create wealth and one day become an annuitant. But for that you will have to invest in rental real estate, so you will have to choose the type of rental that suits you the most to achieve this objective. To make a real estate investment, you will need to build up capital, and possibly use a mortgage. However, it may take time, but you should never give up.