What percentage of your retirement portfolio is in real estate?

[target2019]

Practically 5%. Most of that is VGSLX.
In a brokerage we hold O and HTA.

 

[sengsational]

About 15% in the portfolio and 24% if I toss the house in the the portfolio.

 

[jkern]

Investment Portfolio: 43% RE (3 rentals), 25% Stocks, 23% Bonds, 9% Cash.

RE was about 25% because I bought them during the crash. They have tripled in price since. Stocks have shot up too, but I have countered that with some rebalancing.

 

[Splash]

Zero

We have periodically owned REITs through the years but they were a casualty of simplifying our holdings a few years ago. Physical real estate assets have never been part of our investments.

 

[jollystomper]

REIT fund plus a small amount in a REIT stock = 3% of our investment portfolio.

 

[Sniggle]

0%, unless you include the land I just bought for my retirement house.

I have never been able to get comfortable with real estate, as it seems to quickly move from bubble to bust. And I have never had any interest in being a landlord.

I know there are many that have killed it in real estate, but I am conservative by nature and am more than happy with the market returns over the last 30 years.

 

[LEDBET]

About 20% in farm land that is cash rented. I treat this as a portion of my fixed income investments. The rental income covers about 50% of our annual expenses.

 

[Lawrencewendall]

Thought I posted before. 18% in REITS (Triple Net Lease, Cell Tower, Prison, Agency backed, Low income Housing, Mall, Mortgage, Data Center) 12 positions with a total annualized return of 5.84%. A couple suspended their dividends due to Covid/politics (Mall and Prison) which brought the performance down. The highest pays monthly dividends with an annualized yield of 14.31%.

 

[racy]

4.5% REIT Index fund
2.3% farm land trust deeds
2.2% mortgage dependent promissory notes

 

[Golden sunsets]

We have 10% of our portfolio in Alternative Investments, 3.33% in Reits(VNQ), 3.33% in Emerging Markets(VWO) and 3.33% in Commodities(PRNEX/XLB).

 

[Out of Steam]

1-2 percent reits.

About the same, through TIAA Real Estate account.

 

[euro]

about 25% in rental properties

 

[ducky911]

25% not counting home and vacation mountain property.

What I like about rentals is the increased value is tax deferred .

What I don't like about rentals is because the increased value is tax deferred you can't sell them. Current tax today in California (with fed) would be 30% of sales price...ouch

 

[fancy free]

...watching over rental problems in retirement is just too much like having a job. It's not like retiring when you have to go handle a plumbing problem on a Saturday night.

So if you're going to have rental properties, own them in your 40's and 50's. When you get ready to retire, it's time to liquidate those properties, pay the capital gains taxes and keep your life simple.

How much it resembles a job depends on whether you pay for property management — and on the age of the building(s) and whether you’re managing residential or commercial space.

RE has been great for us. 10% of our portfolio. We think of that income as our pension.

 

[freedomatlast]

Down to about 3% now. Sold one rental last year. Got an offer too good to refuse last year.

 

[UnrealizedPotential]

About 24%.

 

[euro]

That's great, but watching over rental problems in retirement is just too much like having a job. It's not like retiring when you have to go handle a plumbing problem on a Saturday night.

So if you're going to have rental properties, own them in your 40's and 50's. When you get ready to retire, it's time to liquidate those properties, pay the capital gains taxes and keep your life simple.

Or hire a property manager and it is as hands-off as you want.

 

[ncbill]

How much it resembles a job depends on whether you pay for property management — and on the age of the building(s) and whether you’re managing residential or commercial space.

RE has been great for us. 10% of our portfolio. We think of that income as our pension.

Depends on how much RE you have...if only a handful of SFRs hiring a property manager can wipe out your profit margin.

 

[pjigar]

Depends on how much RE you have...if only a handful of SFRs hiring a property manager can wipe out your profit margin.

I concur. I have some SFR and some multifamily. We outsource multifamily management and still see good return on equity. But decent ROE on SFR requires self-management and we have been fortunate to have good tenants all along. The trick is to buy good SFR in good neighborhood and do good screening then you get good talents. And like lot of landlords have said, RE has been very, very good for us. We won't be even halfway on out FI journey without them. But hands on RE is NOT for everyone and it IS a job. There is a reason for high returns because there is high effort and high risk involved. Like everything else in life, there is no free lunch.

 

[tryan]

99% ... vaction rentals and some inner city SF

 

[Winemaker]

I have a friend that's an ex-CEO of a 1000+ person company. He's also a very active and successful day trader.

Out of all successful people he knows, just about every one of them had rental properties. And they let others pay for their assets with rental payments. My buddy had about a dozen rental properties.

That's great, but watching over rental problems in retirement is just too much like having a job. It's not like retiring when you have to go handle a plumbing problem on a Saturday night.

So if you're going to have rental properties, own them in your 40's and 50's. When you get ready to retire, it's time to liquidate those properties, pay the capital gains taxes and keep your life simple.

Or hire your Daughter and Son in law as property maintenance managers. They're gonna inherit them anyways, so let them be involved in their upkeep and maintenance. Once they're paid for, you need expenses to tweak your income.

 

[Retired Expat]

25% of total investment portfolio is in rental real estate. That doesn’t include my primary residence or the vacation house (which also generates a tidy profit on AirBnB when we aren’t there.)

Basically my rental properties cover all my fixed living expenses so my WR is only 1% for everything else. While I earned a good living I my career the big money came from buying, fixing and selling real estate. Rental properties average annual return is 6% and appreciation in the past 10 years adds another 5%. Sometimes much much more if I bought well or improved the properties properly. All bets are off for what last year and this year will mean Real Estate..

One word to the wise on rental properties. You aren’t buying things to suit your taste, or what or where you would want to live, but something where the numbers work and there is a demand from tenants.

 

[kcowan]

Just under 1.5% of investable assets.

Home represents 15% of net worth.

 

[indiajust]

6% spread internationally

 

[2177V]

I am trying to diversify to 25% Equities, 25% Bonds, 25% income producing real estate and 25% Foreign Cash Investment and Precious Metals. Mainly because I expect high inflation might kick in. The government is borrowing, printing and spending money like crazy...which is inflationary. I still remember the government refused to raise taxes to pay for the Vietnam War so inflation kicked in the 1970's.

https://www.investopedia.com/articles/economics/09/1970s-great-inflation.asp