When you consider your retirement, how do you envisage it? Are you hoping to be living a modest, comfortable or luxurious retirement? Is your main priority to see your children financially secure?
Regardless of your current situation, a carefully considered property investment plan will enable most people to prepare for the future they’ve always dreamed of by making only small sacrifices now.
Here we look at some common scenarios – and what we often hear clients say – and offer our suggestions on how to get started in property investment to achieve your goals.
You’re 25 and just married. You can’t afford to buy in your dream suburb.
Buy an investment property in a location that will yield a positive return and rent in your dream suburb. Watch the value of your investment grow and use your equity as leverage, to finance your dream home in your dream suburb a lot sooner than you imagined!
You are professional and independent – and that’s how you want to stay.
Start your property portfolio now while your commitments are minimal and empower yourself to make lifestyle choices in the future.
You are a couple hoping to start a family one day. One of you wants to stay at home while the children are young.
Purchase an investment property while you still have two incomes and watch it grow in value. Pay ‘interest only’ on your investment property while you make as many extra payments as possible into your home loan to reduce that debt. When you’re ready to start a family you will have reduced your home loan such that your repayments are more affordable on one income.
Your dream is to send all your children to university to give them the best opportunities available.
Purchase property now. In the future you can either sell your property and the capital appreciation will pay for university, or by then your rental income may cover the costs. Alternatively, your children could potentially rent the property themselves as a lot of prime real estate is located near major universities. If you’re feeling super generous, the children could live rent free.
You can’t imagine your children will be able to afford their own home the way property prices are rising. You want to give them a head start in the future.
Your strategy could be to purchase a property now and sell it later to give each of your children a deposit from the money you’ve made. Alternately, building up your property portfolio may mean you can pass the investments onto your children in the future.
The above contains general recommendations only. Investors should seek guidance about their individual circumstances before purchasing.