What percentage of your retirement portfolio is in real estate?

[gumshoe]

My real estate investments represent a little over 12% of my total net worth. This includes 2 single family rental houses and my share of family-owned commercial real estate and raw land.

BTW: What's with Bill Gates (of Microsoft fame) buying up all this farmland? He must know something we all don't know about - lol! So surprised and sad he and Melinda are getting divorced.

[75Norton]

We have about 50% of our investments in real estate. This includes several commercial buildings and two vacation rental properties but not our home or second home. I had a dozen single family rental homes when younger but sold all but one. I believe our real estate has returned about the same as the stock market over the past 40 years when the tax breaks are factored in. Definitely more work though so might not be worth it for some.

[Octogirl]

About 50% of our portfolio is in real estate.
We have a SFH residential rental - same tenants for years now.
We have partial ownership in several commercial buildings (LLC) - fully occupied
There is a family vacation property where we are partial owners.
Our real estate has had a steady 5-6% return with minimal hassles.

[Skitso999]

I can't stand REITs. I was placed into one about 10 years ago, and still am having trouble getting out!

Very illiquid.

[JohnT]

We own 2 rental properties, which we have owned and operated as rentals for over 30 years, so no mortgage and fully depreciated. They represent 20% of our portfolio.
We also have our primary residence, but that's not considered part of our portfolio for the purposes of this topic.
I've always appreciated having a good chunk in real estate, and they performed well (low vacancy, and good appreciation as we are in the Bay Area). However, after 30 years, I am seriously looking at divesting in at least 1 property. There is a constant string of headaches and issues which, frankly, I am getting tired of. I am also mindful of liability and other risks that come with rental properties. So like all investments, these rental properties have a natural lifespan.

[Ed Waggoner]

I have 100% in real estate. I sold 2 houses this year and banked enough to live on for 6 years.( I also have an annuity that I can live on for another 6 years) I now own 40 paid off houses in Richmond VA. Some people think this is risky but I think it depends on your circumstances.Our circumstances are as followed:We are currently banking a lot of cash from the rent roll. Everything I own is paid off including primary house and all cars, 3 kids college are paid off. I'm 57, wife is 55 and she will retire from public school system June 2022. Her pension will pay for our health care, property taxes, H/O insurance and all utilities and food for the year. We do self manage but only delegate, we have awesome handymen and an awesome Lawyer, the plus side is it gives us just enough work to keep are minds sharp, we can be anywhere in the world and respond to an email from a tenant and simple direct them to our Handyman for repairs.

[HoneyBadger]

We have 55% in rental real estate, and that generates 65% of our income; the rest comes from the stocks/bonds, no Social Security for another 10 years.

[Fermion]

I wish we could have about 25% in farmland that we leased out but I do not know how to realistically do that with 401K/IRA money. It would be a great alternative to bonds imo.

[Dawg52]

Reits = 2 to 3%. If I include my vacation condo around 14%. Some wouldn't include the condo but when I sell it those funds will roll right back into my portfolio so I tend to include it. And it's been a good investment as it has doubled in value over my 7 years of ownership. Thinking of selling it in a couple of years. Still enjoy it but may start traveling more to other locations and not use it much. I could get into the leasing business so who know......

[HMMY]

I had 10% in REITs when I didn't own any real estate. We have since purchased a home, whose equity is 13% of our net worth, so I no longer feel the need to hold real estate outside of our home. I sold all the REITs in my tax deferred in one feel swoop and I've been donating my REITs in taxable to my DAF (donor advised fund) annually due to outsize capital gains. I still have $50k left in REITs to be donated.

[Joylush]

Four years ago 60% of my assets were real estate (34 houses). I’m down to 19. They should be 30% but due to the run up in prices they are now 40%. I want to continue to divest while prices are high but it is difficult when you value your tenants and they don’t want to move. Eventually they will have no choice and that will be difficult for me. All I can do is give them ample notice and hope they are able to find a solution.

[Bryan Barnfellow]

Quote:

Originally Posted by Skitso999 I can't stand REITs. I was placed into one about 10 years ago, and still am having trouble getting out! Very illiquid.

You are talking about non publicly traded REITS, no? I'm not aware of any issues with publicly traded REITS with respect to liquidity.

-BB

[Letj]

Quote:

Originally Posted by Ed Waggoner I have 100% in real estate. I sold 2 houses this year and banked enough to live on for 6 years.( I also have an annuity that I can live on for another 6 years) I now own 40 paid off houses in Richmond VA. Some people think this is risky but I think it depends on your circumstances.Our circumstances are as followed:We are currently banking a lot of cash from the rent roll. Everything I own is paid off including primary house and all cars, 3 kids college are paid off. I'm 57, wife is 55 and she will retire from public school system June 2022. Her pension will pay for our health care, property taxes, H/O insurance and all utilities and food for the year. We do self manage but only delegate, we have awesome handymen and an awesome Lawyer, the plus side is it gives us just enough work to keep are minds sharp, we can be anywhere in the world and respond to an email from a tenant and simple direct them to our Handyman for repairs.

The problem I have is lack of flexibility with rentals. Great you have a good team in place to allow you to travel. How do you handle vacancies and repairs between tenants? Do you get good reliable tenants who don’t destroy your place?

[Joylush]

Quote:

Originally Posted by Letj The problem I have is lack of flexibility with rentals. Great you have a good team in place to allow you to travel. How do you handle vacancies and repairs between tenants? Do you get good reliable tenants who don’t destroy your place?

I’m not Ed, but my situation is very similar. I’ve had rental houses since 1986. Had about 35 four years ago and am down to 19. I spend 6 month a year at my second home, out of state. I have always self-managed.

I have all excellent tenants. Most all are now long term. I offer great houses at great prices. Having a trusted team of reliable contractors is imperative. I’ve been gone for a month this year. Since leaving I have had to repair a roof leak, replace a toilet, had new AC unit installed and had to repair a mailbox that someone ran over.

I also had a move out. I told my tenant they could break the lease without penalty if they left it immaculate. They did. They were gone last Thursday, I listed it for sale Friday and had a cash offer 57K over asking by Sunday (15 offers total) so I assume they left it in good condition.

I have made it clear to my tenants I will be selling if I can’t easily manage from near or far. If they make my job difficult by not paying as agreed, or are unwilling to work with my contractors for any needed repairs, they can feel free to move. I don’t want to deal with new unknown and unproven tenants. So far everyone is doing their part.

I would like to sell more but I also don’t want to uproot my tenants who have been so good to me. So, it is certainly doable.

[NW-Bound]

Zero.

It's tough enough to maintain my 2 homes, let alone rental houses. I used to have some REITs, but not currently.

[Badger]

None. Except for my home.



Cheers!

[LuckBeALady2016]

8% in a vacant buildable lot in a fast-growing mountain town. Got a good deal on it via private sale from a friend who needed to raise cash, and we like owning something tangible.

[unclemick]

1993 about 25% of NW when starting ER. 2021 House plus Farm about 14 -15% of NW BUT we consider it not in our retirement portfolio. CRP income ends this year unless we can re up on the Farm. In effect a mini pension.

Heh heh heh - Have some REIT etf's among 'my few good stocks' mad money. 1% or so?

[reneeh63]

Currently 11% in Vanguard's REIT (VGSLX).

[Markola]

Looks like 1% exposure in my globally diversified stock and bond portfolio of index funds, according to Personal Capital, plus 24% of net worth if I include my house value.