Time deposit is the most popular way of earning for retirees with their retirement pay because banks are the most trusted institution. However, time deposit yields very low interest earnings that's why some retirees resort to other investment schemes that unfortunately are scams. For me, I am thinking of buying a lot with my retirement pay and build an apartment of about 4 doors that I would rent. Real estate never depreciates in value and the rental also increases in time.
Real estate can indeed be a good investment but can also be a major headache. Renters not paying rent and/or destroying property seem to be common. In many places it is very hard to evict someone for not paying rent. Hopefully your laws are more in favor of the owners.
You are correct on that pesky tenants. I have a friend who has been renting an apartment. Ironically for the landlord, the tenant is bullying the owner of the apartment and even threatening to sue the landlord for illegal eviction. We also have a law that limits the rental increase. With those problems in mind, we have already listed some preventive actions on that. First is the research about the tenant - income, family background, reason for renting, and other things pertaining to the family who will live with him. Second is the implementing a contract so that the tenant can be evicted for non-payment of rentals. There are some more and we are still trying to add to the list.
Purchasing rental propery can help to stretch your retirement check, it is just necessary to be so carefull who you rent to and know your laws about rental property.
It takes work for a rental property, you need to ask yourself a few questions, for example how will you manage repairs? As we age sometimes we are not able to do the type of work we once did so you have to factor in maybe having to hire someone to keep the property up if you can't. With that being said though I do think that a property to rent is a great idea, you can always sell the property and live off of the investment in better comfort then what you might have made from a time deposit.
Real estate is really a good investment, as I have seen that renting rooms is actually trendy and pays off much more than renting a full apartment for a single family. Many local college students, students coming from abroad, domestic executives traveling to attend meetings and many more, require lodging cheaper than hotels and yet practical for a quick occupation. Renting an apartment is an option, but sometimes isn't possible to fulfill leasing requirements that room rentals don't require otherwise.
Over here, it's not advisable to invest in a boarding house because of the many issues that I read about it. Even news reports are rife with problems of a boarding house particularly those located in the so called University belt that caters mostly to students. One of the problems of the boarding house is the unruly boarders. You know mischievous students, they would vandalize the walls and ceilings...surreptitiously. Another issue is the permit to operate - so stressful to get this one because of red tape. For me, an apartment or a residential house is my choice for investing my money.
Hmm, certainly that's the problem with the housing market, that regulations vary from state to state, and from country to country, and based on what the trouble and hassle involved in having a boarding house, definitely yours is best choice and really wise. I'm confident you will be able to fulfill your dreams