Property investment can be a great way to generate income for your retirement. Executed well, it can provide a full-time income for you, either from the rent or taking out a loan against your portfolio.
The best thing is you don't have to wait until you are 65 to enjoy the benefits of property investment. If you begin early, then you can scale back your workload as the income from your portfolio increases.
It might sound easy, but the devil is in the detail. It's important to develop a strategy and adapt it to suit changing conditions.
To get an idea of how much you'll need when you wind back your working life, add up the costs of all the things you'd like to do; maybe its upscaling your home, travelling the world, eating out a lot.
The ASFA retirement standard, which currently equates to $45,962 for singles and $64,771 for couples, is a rough guide to how much most people will need. It's based on the amount retirees need to maintain a good standard of living.
So how can investing in property help you achieve this?
The two main ways to make money from property are capital gains and rental income, which is the more usual way to go for most retirees.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
An outrageous, beautiful monopoly
Telstra's mobile business is a cash machine with few competitors, giving it the highest returns in the world.
Drop the anchor to judge value
Buying and selling decisions should be based on where a stock price is going, not where it has been.
Powering the AI boom
Beyond the software and chipmakers, where will the energy come from?
Get into life
Tucked inside super are products that can protect you from life's inevitable uncertainties.
Paths to home ownership
Taking the road less travelled can sometimes deliver unexpected benefits.
Sold! Quick ways to add value
Small, strategic changes can have a big impact on the look and feel of your home. And get you a better price on auction day.
Money lessons the kids need to know
Your children can learn a lot from your past money mishaps. Here are eight financial conversations I have had with mine.
Property-investing rules: are they likely to change?
The pressure for the government to curb the tax benefits of tax concessions, such as negative gearing and the capital gains tax discount, is unrelenting. Most recently, independent senators David Pocock and Jacqui Lambie proposed five options for paring back investment property tax concessions, with savings to the Federal budget of up to $60 billion over the next decade.
What's love got to do with it?
A rollercoaster of emotions could be driving poor crypto behaviour.
Are we ready to be cash-free?
Saying goodbye to our piggy banks too soon could leave small businesses in the dark when problems arise.
