Is real estate the wrong investment for cross-border retirees? Real estate can be an attractive investment, tangible, familiar, and emotionally satisfying. But too often, investors overlook the true costs and limitations that come with owning property. Especially in retirement, locking up your money in bricks and mortar might create more problems than it solves.
The hidden costs of ownership
The purchase price is just the beginning. Maintenance, property taxes, insurance, and repairs all add up fast. If you’re relying on rental income, you’ll need to plan for periods of vacancy, unexpected expenses, and the time and energy it takes to manage a property (even with a management company). These aren’t just line items; they’re potential stress points.
Liquidity is often underrated
Unlike stocks or bonds, you can’t sell a house in a day, especially not at the price you want. If your plans change or you need cash quickly, real estate can limit your options. One friend recently sold his apartment to stay nimble. He wanted the freedom to travel, invest in new opportunities, and not be anchored by property concerns. His decision highlights a key investment lesson: flexibility is an asset.
Choose what fits your goals
Before you buy, ask yourself:
- Are you investing for stability or emotional comfort?
- Have you accounted for all the costs, not just financial, but time and stress?
- Do you value liquidity as much as growth?
Real estate isn’t a bad investment. But it’s not always the right one, especially during retirement. Having access to cash and the ability to adapt can be far more valuable than an additional set of house keys.
If you’re managing assets across borders or figuring out what comes next in retirement, we’re here to help. Schedule a free Cross-Border Financial Evaluation at profile-financial.com.
Douglas Goldstein, CFP® is the director of Profile Investment Services, Ltd. www.Profile-Financial.com. He is a licensed financial professional both in the U.S. and Israel. Call (02) 624-2788 for a consultation on how to set up your American assets to meet your financial goals. Securities offered through Portfolio Resources Group, Inc. Member FINRA, SIPC, MSRB, FSI. The opinions expressed are those of the author and not those of Portfolio Resources Group, Inc. or its affiliates. Neither PRG nor its affiliates provide tax or legal advice.
Published July 2, 2025.