It’s never too late to get into property investment you know. In recent times there has been a shift in age groups investing in property, in Australia.
The fact that more mature-aged Australians are investing now, is indicative two factors. Firstly, the superannuation is too small to fund people’s retirement. Secondly, cash in the bank is delivering minimal returns due to low interest rates.
It’s also worth mentioning that people are living far longer now than ever before, so we have more time towards the end of our lives to own and enjoy property. Therefore, we expect that there will be a growing number of Australians in their late sixties and seventies, who will be investing.
At the moment, there are over 2 million people aged 55+ in the workforce. This number is set to increase the population ages over time. Resulting in more ‘older’ people investing in property.
If you’re aged fifty and over, you have a higher chance of being able to buy into real estate as an investment opportunity. This is especially the case if you have paid off most of your owner occupier loan.
Factors such as home equity, tax benefits and household income will give you the chance to buy several investment properties. More properties equal more income, which could help to fund a more comfortable retirement.
Here are five tips for the more mature investor:
1. Seek financial advice
Before investing, go ahead and seek out some independent financial advice. This will help to determine what kind of property investment strategy is best suited to your needs.
It will also help to determine how much you can borrow safely, without getting into debt, or any kind of financial struggle.
2. Consider hot-spot areas
You should look into potential hot-spot areas, as they will tend to be the ones which deliver the highest rate of capital growth in the short-term.
Don’t forget though, that you should seek independent and professional advice when selecting areas to invest in.
3. Diverse perspectives of the market
Come to the market with a wide perspective on property. Many new investors in the property market end up buying too close to home. This means they miss out on excellent investment opportunities in the wider geographical area.
4. Talk to other mature investors
If you know other people your age who have taken the investment plunge, great! If not you’ll want to seek out some mature property investors that you might learn from.
Listen to their success stories and heed their mistakes. Most investors will be happy to talk about and share their experiences for free.
5. Draw up an investment plan
As ever with real estate, it’s super important to have an investment plan. This will identify how many properties you can invest in over a 5 to 10 year period of time. It’s a good idea to have a pragmatic approach to property investment, as making emotional decisions often proves to be costly.
As morbid as it may sound, older investors have a smaller window of opportunity to recover from mistakes than their younger counterparts. With that in mind it’s important to carefully research and draw up an investment plan, before sinking any money into a property.