Retirement may be an idea sitting in the back of your mind, but in order to have the savings you need to live the life you want, you need to start thinking about it now. Having a long-term investment property ensures security in your future income and savings, and means you’ll be more able to do the things you want with your hard-earned retirement. Whether you are looking for investment properties in Melbourne, or house and land packages in Sydney, here are some key points why investing could be your way to boost your retirement savings, and enable you to do more of what you want.
1. Provides You With a Steady Income Stream
It goes without saying that a steady income is a key to remaining secure and having the freedom to do more things. This becomes even more important once you make the decision to retire and solely rely on your superannuation. By investing in property you can increase your income in retirement, through rental payments made to you. It’s key to ensure you have a long-term plan to pay off your investment loan before you retire, and just be receiving tenant payments.
2. Increase Your Potential Retirement Fund
If you, like an increasing number of Australians, are managing your own super fund as a Self-Managed Superannuation Fund (SMSF), you have control over choosing the fund’s investment vehicles. Property is currently the preferred investment for SMSFs because of the security it provides, and the access to more affordable loans.
3. Tax Breaks
The tax breaks for negative gearing can be incredibly high, and can both provide huge tax benefits during retirement if your investment loan is not yet paid off, or enable you to put away extra savings before you retire. Investors can also be entitled to a tax break if their property is sold at a profit, another key reason to view your investment property as a long-term asset, with significant future benefit. Don’t forget to stay up to date on the changing depreciation legislation which only allows future tax incentives for people who purchase newly built properties.
4. Control
The biggest fear of retiring for many is losing their sense of control over their financial future and security. Having an investment in a property that you’ve researched, have control over who lives there, and potentially have even watched being built, ensures you have control over your income again. To increase your peace of mind further, it is worth looking into not just investing in an already built home, but buying a complete land and home package.
What Are My Options When It Comes To Properties?
In all forms of investments you’ll have 2 main choices:
- Investing in newly built investment properties or land & house packages
- Investing in established properties.
While established properties may be in more central locations and quicker to provide rental income as the house may only require some repairs, when considering a long-term investment, a few months shouldn’t sway you significantly. In fact, when investing in property you will be much better off investing in a high-growth potential area that is next to those suburbs which have already become extremely popular and extremely expensive. You will also have more freedom in your home designs, features, and need to worry much less about renovations and fix-ups if purchasing a new house or house and land package, which will save you a lot of money in the long term. Also, keep in mind that newer houses are always extremely popular in the market!
Need help getting started? iBuyNew will point you in the right direction! Whether you are looking for apartments, townhouses or house and land packages, working closely with an iBuyNew property consultant, who understands the market, will help you find something suitable that’s tailored to your needs and requirements. Get in touch with them on 1300 123 463.
Zoe Langenberg
Zoe is passionate about coffee and interior design. You can find her most weekends exploring an art gallery or devouring a good book.
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