Retirement and Property Investment: The how, why and three steps to be financially free.

Regardless of our stage in life, retirement is something that will always be sitting in the back of our mind.

Can I retire young?

How much money do I need?

The questions that we might have rolling around in our brains are pretty much endless.

It’s safe to say, when we retire, we want to be financially comfortable, able to live the life we want and spend our money how we wish – enjoying the best of life.

The thing is, with the state of the economy and the world in general, people are retiring later and later. According to KPMG, over the past 20 years, the average age of retirement has increased by 3.7 years for women and 2.9 years for men. In fact, the average retirement age of Australians hasn’t been higher since the mid 1970s.

So, people are working longer and retiring later – and now you’ve read this, you’ll probably go out and notice more and more that older citizens are working, particularly in service and retail type jobs.

Whenever you go to places like Bunnings, you’re likely to see a solid proportion of incredibly knowledgeable older citizens, working up into their 70s.

And for the most part, there’s one key reason for this

On the whole, it’s not because people are wanting to fill their time and have some fun (although this can be the case sometimes)…

They don’t have enough money in SUPER to retire.

Unless you inherit millions from an aunty, unfortunately, the chances are, you’ll have to retire with what you’ve got – which highlights the necessity for people to work for longer and retire later.

So, the point is, unless you’re already in that fortunate situation when it comes to super, and you haven’t been in a situation to have invested in property 30 years ago, retiring with what you’ve got could be hard.

The thing is, it’s never too late to create a strategic property investment plan that works for you – at Propell, we tailor your investment to your circumstances, including your life stage, budget and overarching goals to make sure you’re on the right track!

So, here are 3 steps to retiring financially free:

1. Create a strategic financial plan

   A big part of getting started on any journey is having a plan that you understand, and can follow – it’s no different when it comes to your finances, or property investment for that matter.

   Having this plan as a starting point provides that structure and confidence that is often so easily missed, mainly because it really sets in stone the direction in which we can head, to maximise our likelihood for success.

   The other crucial aspect of a financial, or investment plan is being sure that it’s tailored to your goals. You don’t want a second hand plan that worked for someone else, because why would that work for you?

   As I’ve mentioned, everyone’s circumstances, family, job and goals are different, which makes it so important to put YOU at the forefront of your plan.

   So, with a strategic plan (check out this BLOG to learn more about why we love them), it allows you to see where your future is heading, giving you more understanding of those big moments in life, including retirement.

2. Invest in property as EARLY as possible.

   You know what they say…

   When it comes to property investment, the best time to invest was YESTERDAY.

   Why?

   Because when all is said and done, long term property investment, especially in Australia, makes a compelling case for being the most stable and beneficial form of investment. And the more time you spend in the market, the more likelihood of experiencing solid long term growth!

3. Hold long term investments for maximum capital growth.

   I’m not going to lie, those property flipping shows can be pretty cool – and sometimes people do quite well!

   Unfortunately, though, it’s not simply pools of money and never-ending profit. House flipping (and other short term investment methods) can suck out the money and time out from underneath your feet.

   What they don’t talk about on these shows are the fees that surround buying and selling in the short term. In Australia, we have capital gains tax, which you must pay each and every time you sell something you make money on – shares, products and property. Therefore, more properties sold = more tax paid.

   So, the moral of the story is, if you purchase high-quality property that you can hold over a longer timeframe, you won’t have to pay these taxes as frequently. Long term property investment, held in areas of quality, is a recipe for success.

   For the property flippers, it’s no wonder they sign TV deals to film their journey – that’s where they really make their money!

At the end of the day, if your super and investments don’t have you set up for retirement, it’s probably safe to say that the measly aged pension won’t be helping you out too much.

Especially if you don’t set yourself up for the future NOW.

Creating solid, reliable long term investments is what helps build equity as you move towards that retirement age.

Want to chat more about how we can help you build a tailored Propell Property Plan?

Give us a call on 1300 776 735, or get in contact HERE – we’d love to help!