If you want to bolster your wealth for retirement in a big way, one option is to begin investing in property. Do you have enough cash to consider it?
For many Australians who are looking to carve out a retirement plan, the typical approach is to take a modest portion of each pay check and make a contribution to super. Often, the strategy simply ends there. But if you really want to bolster your wealth for retirement in a big way, one option is to begin investing in property.
Property investment scares off a lot of people; if you know first hand how hard it can be to buy a house, the last thing you want to do is voluntarily buy more real estate that you don’t need. But you might be surprised by how cheaply you can enter the market, and by how significantly investing can begin boosting your wealth right away.
It doesn’t take much to get started
It might seem daunting to save the cash for the deposit and all the mortgage repayments required to buy investment property, but it’s really not so bad. Property expert Zoran Solano recently told Domain.com.au that it’s realistic to begin buying property even if you only have 5 per cent of the total purchase price saved.
“You can still get into a 17 to 18 kilometres radius from the Brisbane CBD for sub-$400,000 for a house, and even within 10 kilometres for a unit,” Mr Solano said.
With this in mind, it’s feasible for new property investors to get started even if they only have about $20,000 in savings. This number is not insignificant, but it’s more attainable than you might think.
You can uncover major value right away
The Australian Securities and Investments Commission pointed out that there are several key advantages to investment that make it a good bet, even when it seems like you can just barely afford it. For example, when making income right away by renting properties to tenants, you can make a profit even if you have hefty loans to pay off. Additionally, there’s capital growth to consider – if your real estate increases in value, you will benefit from capital gains when you sell it.
All in all, it’s a lot easier than you think to be a gainful property investor. All you need is access to low-interest loans that can get you started. Luckily, we specialise in helping you find them. We have access to an extensive network of Australian mortgage lenders, and we’re eager to connect you with one who can help you build your wealth.