Property Investment Tips: Investing in property for your retirement

By the resi financial blog team, 13 October 2014

Property Investment Tips: Investing in property for your retirement

Having enough equity and income to retire, without having to work through deriving their income from their property assets and rents is the goal of most property investors. But sorting out your finances now to help make this a reality is the hardest, yet also the most important part of planning so far ahead.

Using your equity

For those that own their own home, you are in a good position to leverage off of the equity that you already have. This means you could borrow the entire amount, including fees, without having to pay any deposit in cash that you have had to save up.

If you do not own your own home yet, or do not hold enough equity in your home, you may need to consider something else.

Investing in a property with others might be a great way to reduce your commitment and share the costs around.

Investing with your super

Use your superannuation. You've heard the term safe as houses? Well, it's speculated this saying came around in the 17th century when people realised that residential bricks and mortar was a solid investment option. And there's a reason for this - hold property for long enough, and your chances of seeing value growth are high.

Given current market conditions and estimated population growth, residential property certainly seems to be the way to go.

Self Managed Super Fund

One of the easiest ways in which to use your super to purchase an investment property is to use a Self Managed Super Fund (SMSF). A super fund can borrow up to 80 per cent of the purchase price of a property, and up to four people can combine their supers to form a deposit. There is also the potential to practically eliminate Capital Gains Tax on a property bought through a SMSF.

If you would like advice on how to maximise your funds available for retirement, and are interested in investing in property to do so, talk to a resi loan specialist today.

Categories: Home Loans, Property Investment