Retired Air Force Family

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How to use Real Estate to Supplement your Military Retirement Pay

you are retired from the military, or currently serving, we know the sacrifices you and your family have made through the years and we sincerely THANK YOU for your service! Whether you are already retired, or currently serving and thinking about your military retirement planning strategy— using real estate is a fantastic way to build wealth and supplement your military retirement pay. Let us show you how!

Hill Air Force Base Logo

Like many, I joined the military at 18 years old, thinking retirement was SO far off and for old people. (I actually called them “old retirees”.) And when I finally retired, I’d have a monthly military retirement check rolling in so I could spend my days basking in retirement glory. Guess what? I spent 21 years on Active Duty and before I knew it, I was one of those “old retirees.” Only I didn’t feel old! And that monthly retirement check? Yes, it comes in every month, but it’s not nearly what one needs to bask in retirement glory. As you know, military retirement is calculated only on your base pay (between 50-75%, depending on the number of years served) and does not include your BAH, BAS, COLA, or any other types of pay you received while on Active Duty. Good thing I had a plan!

US Navy with USA patch

Read on to Learn How You Too Can Use Real Estate to Help Supplement Your Military Retirement Pay.

Once you retire, you have 3 choices: start another career, live off of your investments, or better yet–do both! The average military family faces a permanent change of station (PCS) every 3-4 years. That means a possibility of 6 PCS moves during a 20 year career! Some PCS moves may be to an overseas location, or to a Remote–admittedly, not ideal locations for purchasing real estate. Therefore, we recommend having a goal of purchasing one property at every state-side location you PCS to. Ideally, start purchasing properties early in your career using an experienced Realtor, and your VA loan eligibility ($0 down to purchase–click HERE to contact a VA loan specialist who can explain all of the details.) While you live in the home, you can take advantage of your tax-free BAH to pay the mortgage, and when you PCS, we recommend hiring a property management company to handle the rental, and enjoy the benefit of someone else paying your mortgage. Once you retire, imagine having a steady monthly income from at least 3 rental properties coming in each month, paid for with someone else’s money!

100 Dollars

How Do You Start Investing in Real Estate?

It is essential to work with a military-friendly Realtor who will provide you with an overview of the market (re-sale and rental) and help you determine the best location and type of home to purchase. For example, when it’s time for you to PCS, your Realtor can show you recent re-sale prices and rental evaluations to help you determine if renting, or selling and using your profits towards another purchase, makes the best financial sense for you.

If you are getting ready to retire, or if you’re mid-career and wondering how you too can make real estate part of your military retirement planning, contact us today at 801-821-9400 for a free military consultation. We’d love to help you and your family with a plan to accumulate wealth through home ownership!