Real Estate


The most important real estate investment for many Americans is their own home. All real estate investments, whether your own home or any one of a variety of other real estate investments, can provide an important source of retirement income and tax advantages as you near retirement.

It is critical that you use real estate investment as a key part of your retirement plan. You should work with your financial advisor and real estate investment advisor to maximize your use of your real estate investment.

Real Estate is typically used to describe an “estate” or property consisting of lands and of all things permanently affixed to those lands, such as buildings, crops, or mineral rights. For most of us, we commonly think of our home and the land to which it is attached (or a commercial building and the land upon which it sits).

Real estate investments include:

  • Your own home
  • Second homes
  • Vacation homes
  • Rental homes
  • Apartment building
  • Commercial buildings
  • Retail buildings
  • Real Estate Investment Trusts (REITs)

Your Home as a Real Estate investment

After a productive work life, many Americans have purchased a home and acquired significant equity (equity is the difference between the value of a property and any remaining debt secured by that property).


This equity can be utilized to produce income in a variety of ways:

  • You can sell your home to turn the equity into cash for other investments, to move into an apartment, or to cover medical expenses. You may not have to pay taxes on this transaction; consult your tax advisor.
  • You can refinance your home to take capital out for other investments, for vacation property, or for other needs.
  • You can get a “reverse mortgage” on your house, allowing you pull money out of your home without mortgage payments.


You can plan for real estate so that you can have a financially secured future and reap the benefits after your retirement. The prices and the homes for sale in the US largely vary with the different types and location of the property. It is associated with the growth of the economy of the nation as a whole. The economic growth of the country is linked with its real estate.

Current tax law will often allow you to either completely avoid income tax on the capital gains from selling your home and/or to pay significantly lower capital gains taxes on portions of those capital gains. Again, you should consult your tax advisor or financial advisor to better understand these options. Useful information from the IRS regarding selling your home is available at:

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and in IRS Publication 523(