What does your dream retirement look like? Is it pursuing hobbies and interests that have been on the backburner during your working years? Eating out more, travelling, and having the means to spoil yourself and your family a little? Or simply enjoying a comfortable lifestyle where you can relax without worrying about money?
We all want to live a happy and easy life in retirement. However, according to the Australian Bureau of Statistics, the pension remains the main source of income for most retirees, and financial security is the biggest factor influencing when people are able to retire.
So why do so many people end up on the pension and working past retirement age?
For the vast majority, it’s because no-one tells you how to create your own wealth—it’s something you need to take action on yourself. And without a financial background, this is not easy!
We identified a gap in knowledge around investment opportunities and created a simple strategy that allows everyday hardworking Australians to purchase investment properties by leveraging their super to achieve the goal of financial independence in retirement.
In this article we explain how this is possible, along with the key reasons why property investment can be a smart way to secure your financial freedom and create the retirement of your dreams.
Property provides an ongoing source of income
If you reach retirement and are solely reliant on a dwindling super balance topped up by the age pension, it can be stressful. Having an investment property can provide you with a passive income and potential tax benefits—and if you choose your properties wisely, they will appreciate in value. Having a source of ongoing income offers you peace of mind that you are not only drawing from your savings, but are contributing to them too.
Start your portfolio by leveraging your super
One way to kickstart your property portfolio is to leverage your super to purchase an investment property. This is possible through our Property Portfolio Accelerator Program, a proven investment strategy that involves setting up a self-managed super fund (SMSF) so you can choose where your super is invested. By investing in property inside of your SMSF, you can leverage your super to access a deposit to purchase your first investment investment property, then add to your portfolio sustainably over time.
Get expert advice and support all the way
When it comes to SMSFs, one of the biggest barriers for most people is the knowledge that SMSFs are complicated and require expertise and lots of time to manage. While this is true, there is an alternative that allows you to reap the benefits minus the hard work. With a self-managed ‘managed’ super fund (SMMSF) you get expert advice and support all the way. Our team will manage all of the behind the scenes requirements and provide expert advice to help you find a turnkey property that ticks all the right boxes for long-term growth and rental returns.
Know the pros and cons
While property investment is viewed as a lower risk strategy than some other options such as shares, like anything there are pros and cons. Some of the pros we have discussed above, including an ongoing income, increase in value over time and potential tax deductions. On the flipside, you need to be mindful of the possibility of added costs to maintain the property, tenant vacancy and variable interest rates. Much of these risks can be mitigated when you select a property that includes the five property investment must-haves: proximity to a CBD, government infrastructure spending, schools, public transport, and shops and services.
Take action and get the right advice today
Whether you are 30 years shy of your preferred retirement age or 10, the best time to create and implement a plan to secure your financial future is now. Book a time to talk to a financial advisor and start researching your options and making plans today.
Because your dream retirement will only happen if you take control and make it happen!