Harrington Tips for Mature Aged Investors
It is never too late in invest in property and over recent months our company has seen a growing number of Australian, mature aged investors buying investment properties.
Many of these people have decided to invest in property because the total value of the superannuation is too small to fund their retirement while cash in the banks are delivering minimum returns due to low interest rates.
The reality is more people are living longer and working longer so over coming years we can expect a growing number of Australians working into their late sixties and even seventies. Currently there are over 2 million people aged over 55 years of age in the workforce and this number is set to increase as our population ages.
If you aged fifty and over, you still have an opportunity to buy into real estate for investment purposes especially if you have paid off most of your owner occupier home loan. The equity from your home plus surplus, tax benefits plus income from your wages can give you the opportunity to buy several investment properties that will help fund your retirement.
Five Tips For Mature Aged Investors
1.Seek independent financial advice to determine what kind of property investment strategy is best suited to your financial situation and also determine how much you can safety borrow without putting yourself under financial stress.
2. Focus on potential hot spot areas as these tend to deliver the highest rates of capital growth in the short term. Again you should see independent advice when selecting these areas.
3. Take a wide perspective to the property market. Many first time property investors make the mistake of buying their first investment property in their local suburb and overlook excellent opportunities in a wider geographic area.
4.Seek out mature property investors in your age group and learn from their successes and mistakes. Most will be happy to share their experiences for free.
5. Put in place an investment plan that will identify how many properties you can buy over a 5 to 10-year time frame. It is important to take a pragmatic approach to property investment rather than making emotional decisions that can prove costly.
Older investors have a smaller window of opportunity to recover from mistakes than younger investors, so it is very important to put in place a carefully researched plan before buying your first investment property.
