Looking for something substantial to invest in for your retirement? Much less volatile than the stock market, investing in real estate is an ideal way to gain passive income. Dentists in particular are in a perfect position to purchase real estate. Statistically, a high percentage of dentists already own single family homes and/or their own practices. Even just starting out, the field of dentistry is a low-risk, high reward industry that can set a foundation for real estate ownership.

Here are reasons why investing in real estate for retirement is a great opportunity for dentists.

1. Long and Short-Term Rental Properties

One of the best ways make extra income is investing in rental properties. Having long-term tenants means a continuous stream of passive income. Owning rental properties also means you can have as much or as little involvement as possible. If you’re considering long-term rentals, many people work with rental management companies which takes out the responsibility while you accumulate rental income.

Another approach to making extra income is short-term rentals. Renting out a vacation home or nightly on AirBnb means you can rent out your space as much or as little as you want. There are a lot of flexible options in the short-term rental market. Although your income stream won’t be as consistent, short-term renting has easier regulations. This would also be an opportunity for you to use the space yourself for a weekend trip or a second home.

2. Pays the Mortgage off Itself

Even if you can’t purchase a rental property outright, paying a mortgage for it couldn’t be easier. Since you’re having a stream of income coming in from the tenants renting your property, why not use it to pay off the mortgage? Eventually, when compound interest takes over in a few years, it will equal a substantial passive income. This means that little to none of your hard-earned money earned during years as a dental professional was used to purchase the home.

3. Tax Advantages

Owning a rental property means you can write many things off your taxes. The list is expansive, and it can include advertising the property, cleaning, maintenance, and commissions you pay towards the rental company and agents, insurance premiums and more.

4. Appreciating in Value

Though there are no guarantees, real estate in general appreciates in value with time. If you do your homework, (as the old saying goes, “Location, location, location!”), get professional advice and invest wisely, then you won’t only see passive income from your renters, you’ll see a jump in net worth in time as well. For instance, purchasing a fixer-upper in a good neighborhood and doing some renovations yourself will already increase the value of your investment.

Being a dentist means being part of a community. Many dentists buy property locally because of their connections to the town. If you plan on investing locally, be sure to choose a house and a neighborhood that has potential for long-term growth. That way you can be sure that you’re not only investing in the present, but the future as well.