Property can be a relatively safe investment that could be the key to helping you safeguard your financial future. Why then are Australians sometimes reluctant to invest in real estate?
Perhaps it’s the daunting costs of entry, uncertainty in the market, or simply a reluctance to go through the whole process of buying a home again. Either way, if you’re putting off investment you may be missing a chance to set yourself up for life, or unknowingly sacrificing your early retirement.
Armed with the right knowledge and a suitable home loan, investing could be your passage down the road to riches.
You’ve come into some money
The Australian media is forever telling tales about lotto winners or inheritance recipients who spend ludicrous amounts of money on absurd and frivolous luxuries. Instead of wasting your windfall on a silver plated Lamborghini, or a personal zoo full of rare animals, why not set yourself up for life by investing in property?
According to MoneySmart, property can be less volatile than many other investments, while also potentially providing tax benefits, capital gains and regular income from rent. The financial benefits of such an investment could last for the rest of your life – ensuring that when you’re ready to retire you can live in the lap of luxury. To make up the rest of your property’s purchase price, seek help from a mortgage broker, they can advise you on a suitable loan products to help make your investment a success.
The Association of Superannuation Funds has revealed that the cost of retiring may be even more than you think. According to their estimates, a comfortable lifestyle for a couple after retirement will cost in the neighbourhood of $640,000.
The average age of retirement is 65 in Australia as reported by the Australian Bureau of Statistics. If you and your partner saved $10,000 combined each year for your entire lives, you would only just be able to afford a comfortable retirement.
Instead of worrying about amassing this entire sum, invest in real estate and you’ll potentially continue to receive income from rent indefinitely – helping to make your retirement as comfortable as possible.
You own the property you live in mortgage free
After getting out from under a mortgage, shouldering another is probably not the most appealing prospect. However, as you can see there are potentially countless benefits to getting back on the mortgage horse and investing in your future.
You can contact a Smartline Mortgage Adviser on 13 14 97 for mortgage advice. Or complete our call request form and we’ll call you!
DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.