Create Wealth for Retirement

How to use a Real Estate Investment Property to Create Wealth for Retirement

Residential real estate investment properties are a guaranteed method of building wealth and assets. No other investment strategy can claim that.

Unlike the volatility of the stock market, residential investment properties will provide you with a consistent and permanent source of passive income from the moment that you invest. The value of a property investment does not experience the dramatic fluctuations in value that shares do, nor will they ever "crash" leaving you with nothing more than a worthless piece of paper.

After using real estate investment strategies (as discussed on the Mortgage Reduction Page) to successfully reduce or even fully pay out your home mortgage, you may ask what is next? Of utmost importance is ensuring that you are preparing for a debt free, comfortable retirement.

The Facts Of Retirement

To be eligible for the Age Pension in Australia, currently males must be 65 years of age. This is slightly less for females
In 2017, the age at which males will be eligible for the Age Pension will increase to 67 years and will continue to rise in lots of 6 months every 2 years. ¹
At the present time, with some exceptions and adjustments, the maximum single pension rate is approximately 25% of the Male Total Average Weekly Earnings using the Consumer Price Index as a guide. ²

The two important questions are:

Do you want to be forced to work until you are 67 because you have no other options?
Are you prepared to survive solely on the Age Pension which is approximately one quarter of the average wage of a man, and your Superannuation, if any?

How much is needed for Retirement

The majority of retirees find that their living expenses rise once they retire. Some of this increase in expense can be contributed to the rising costs of health care as our body's age, supporting children and grandchildren and the desire to travel.

It could be estimated that approximately $100,000 gross income per year per couple would be a reasonable estimate for enjoying a very comfortable lifestyle. Of course, it is up to each individual to consider their circumstances in order to assess how much they will need for retirement.

Wealth for retirement – why use residential investment property?

In order to create wealth for retirement and ensure that you attain the lifestyle that you, your partner and your family deserve, it is a good idea to invest what money or assets you have in a safe investment that guarantees good returns.

A real estate investment strategy can create a solid and secure foundation for creating wealth in preparation for retirement. How?

Firstly, the correct loan product should be obtained. Real estate investment properties will provide an income from any rent collected. Initially the rental property investment income should be reinvested directly back into the loan in order to reduce the mortgage over the property. However, once the investment property loan, or home loan, is paid out the rent collected will become your passive income during retirement. Multiply this passive income from rent collected from several residential investment properties you can see how your retirement income quickly grows.

For more information on residential real estate investment property loans and mortgage reduction please click here.

Not only will you collect income from your rental property investment, but the value of your property will increase. A compounding effect on the value of the property investment will take place as investment property values steadily increase.

Good real estate management means that any real estate investment properties that you have will be properly overseen and maintained. This helps to ensure quality, long term tenants and cuts down on the expense of lost rent each time tenants move and the advertising expenses associated with finding new tenants.

So where should you invest?

Real Estate Investment Property Brisbane

According to the Queensland Governments SE Queensland Regional Plan 2009-2031, “The City of Brisbane contains the largest proportion of South East Queensland’s population which is expected to grow to about 1,270,000 by 2031 requiring an additional 156,000 dwellings to accommodate the population increase.”³

With this drastic increase in population, the demand for rental properties is skyrocketing! As the demand for rental properties grows, the price of rent will also increase. Don’t miss out on your opportunity to get a piece of the revenue from Brisbane’s expanding population. Brisbane rental property investment is a concrete investment for your money.

If you would like real estate investment advice from a specializing real estate investment company, then please contact Brisbane Investment Property. We can assist you in creating a real estate investment strategy to prepare for your retirement. The key is begin investing for retirement now. The sooner you begin investing, the sooner you can stop working and start enjoying your retirement.