If you’re PCSing all the time, you’ve probably thought about investing near a military installation. After all, you know first-hand that there are plenty of new residents all the time. But should you invest near one? This episode of From Military to Millionaire breaks it down.
Investing near military bases has pros and cons. One of the pros is that having military tenants is ideal. You know they’re going to pay rent. On the off chance that they don’t pay, you can contact their command to make sure it gets paid. Plus, they’re generally clean and orderly people. You won’t have to worry about them destroying your property. Another benefit is that military bases have the potential to grow. A growing population means the market increases. This provides landlords a great opportunity.
On the flip side, military tenants are not long-term tenants. After two or three years, they’ll likely be re-stationed, and you’ll have to find a new tenant again. Also, military tenants can break their lease early without a penalty if they get orders to go elsewhere. Another downside is that appreciation is often slower around military bases than in other areas because salaries don’t usually outpace inflation. Perhaps the biggest con is that military bases can close or shrink. Without a base, the market might not be able to support your investment.
Before investing, talk to your personnel office to see how the base’s future looks.
Take Control of Your Financial Future
David Pere is a former active-duty Marine who is on a mission to educate the military community about financial readiness. Most people hear that term and roll their eyes, but Pere wants everyone to know that readiness can be achieved – without a lot of effort. He teaches personal finance and real estate investing to service members to help increase savings and increase their chances of achieving financial freedom.
Want to learn more about Pere? Check out the Military to Millionaire website, and connect with him on Instagram or Facebook. Subscribe to his YouTube channel here! Take a look at David’s book – The No B.S. Guide to Military Life here.
Looking for more ways you can be financially strong? Check out what’s new on our Mighty Money page.