According to an article in the Wall Street Journal Should You Add Real Estate to Your Retirement Portfolio?
Dr. Johnson said the “optimal mix” in a portfolio is 50% real estate, 30% stocks and 20% bonds. This formula, he said, would be considered sufficiently diversified to provide stability in retirement. The real-estate component can include your personal dwelling, investment property, or a mixture of both.
“In our research, we found that portfolios that have a mixture of stocks, bonds, and real estate outperform other portfolios,” said Ken. H. Johnson, Ph.D., a real-estate economist at Florida Atlantic University. “You get a better risk/return profile from owning real estate.”
Multifamily Housing Investment.
After you have experience with single-family housing, then you may want to invest in a multi-family investment. The obvious advantage is that you have multiple rents coming in, so you are more assured of having a steady rental income while one tenant moves out and another moves in.
Ranches / Recreational Properties
Ever thought about having land in the country? Not only do you get the opportunity to enjoy the land with your family, you may also use the property as a future investment for retirement. Rural land often has very low holding costs (low land taxes using Agricultural Tax Exemptions and likely no City taxes). Rural land appreciation can be significant. For example: According to the “Texas Real Estate Research Center”. The nominal price of rural land has increased from $209/acre in 1971 to $4,116/acre in 2022.
Vacation Rentals and Airbnb
Vacation rentals can also be a good investment, and you can use the vacation rental for your own vacation use.