Can property help grow your retirement income?
These days we are living longer and have higher expectations for the lifestyle we want to enjoy in retirement, so don’t underestimate the importance of planning financially for it.
Ideally creating a plan to save and invest starts many years ahead of retirement to ensure you have a comfortable income to retire on.
It’s a good idea to consult a financial advisor to help you plan and stay in control of your finances. They can help you understand how much money you have now, how much money you might have in the future and where it will come from. Then they can also help you look at ways to grow your retirement income through investment strategies.
So is property a good investment for retirement?
A rental property offers considerable benefits to retirees including:
- Ongoing rental income – which can initially be used to pay off the mortgage and once the debt is paid down becomes an income stream in retirement
- Tax breaks – that can help pay off the property while you’re still working
- Long term capital growth – You can then use the equity to keep investing or sell the property to release the equity to live off
However you should also consider the ongoing costs of maintaining a rental property and whether that will be manageable in retirement.
That’s why it’s important to consult with an expert about whether investing in property is the right strategy for you.
At Independent Property Planners Australia we work with you to create a 10 year financial plan that includes a detailed property investment strategy with valuations on current and proposed investments, rental appraisals and ongoing support from our team.
For expert advice on how you can invest in property to grow your retirement income book an obligation free consultation today.