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We are all thinking about it and some of us are already taking action and getting their hands on property investment properties. Investment in property is considered one of the most popular retirement investment tools.

For most of us the obvious choice of properties are detached houses. Most people prefer to buy own houses which they then can offer for rent or sale.

Of course there is a drawback to this approach. Competition is fierce and there are markets where investors are artificially driving up the cost of property, while completely discouraging first-time buyers. If this is the case, the bursting of the housing bubble is only a matter of time.

How to avoid these situations and still successfully invest in property? How can I get ahead of the competition and be prepared for bad times in property investments as well? The only answer I have is commercial property.

Why commercial property, you may ask? Commercial property is a sound investment in good and bad times of the local property market.

If you become the owner you do not have to do the job yourself. You are the owner and not the manager of the apartment building. The cost of owning and managing the building is part of their expenses and be covered by rental income.

Apartment buildings are considered commercial property, if there are 5 or more units. To make the numbers work you should consider any of several small apartment buildings owned or should opt for large buildings. This will keep the expense to income ratio in a positive cash flow. Owning rental properties is on positive cash flow.

By investing in houses, it is easy to achieve a positive cash flow. Even if your rental income does not cover your expenses 100%, the appreciation of the house will contribute to positive cash flow. With commercial property, the rules are different.

While single-family homes are assessed by the value of recent sales of similar homes in your neighborhood, commercial property are not concerned about the appreciation of the value of other buildings. The property value is based solely on rental income. To increase the value of commercial property you need to find a way to increase rental income. The formula for how to calculate this would be too much for this short article.

What is another advantage of investing in commercial property? Financing commercial property is so much different from owning a family house. Commercial property financing is based on the properties ability to produce positive cash flow and cover the cost of financing.

Finally, it needs saying that no matter which type of investment tool you choose, this should be a reliable and safe method of handling your money since you will need much of it in your retirement.

No matter what age you have right now – retirement investing is a good thing to think about at any age. For the info about investment, also about retirement investment fund in particular – please visit thissite.

And if you need stock market news, go to this site.

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