How property investment can fund retirement and future generations

While you may still be years away from retirement, it is important that you prepare early on. One of the best ways to prepare for retirement is to invest in property. Investing in property can provide you with long-term benefits in terms of helping secure your financial future and that of your loved ones. Listed below are a number of reasons as to how property investment can help fund your retirement and future generations.

1. By providing you with a steady income stream. When you retire, you lose your income. Even though you will be receiving your retirement benefits after leaving work, it is often not enough for you to maintain the lifestyle you had when you were still working. By investing in property you can increase your income in retirement, through rental payments being made to you. “You can use your rental income to give yourself a more comfortable life, to travel more and enjoy your retirement” said Agem Property Director, Adrian Fiore.

2. By increasing your potential retirement fund. Many Australians today choose to manage their own superannuation fund. This type of fund is called a Self-Managed Superannuation Fund (SMSF). Like other types of super funds, this is specifically designed to provide funds for the retirement of each member. The difference lies in that members themselves control the fund, and thus have free hand in choosing the fund’s investment vehicles. Property is currently one of the preferred investments of SMSFs partly due to more affordable loans, and the secure nature of investing in property.

3. By giving your loved ones a solid investment. Although property prices experience occasional dips during a down economy, long-term capital growth of properties tends to be fairly steady. In a report released by RP Data in 2010, it revealed that the average annual increases in property prices since 1980 (a 30-year period) were 8.4 per cent. In comparison, the rate of inflation during that period was only 4.6 per cent. Property has the tendency to increase in value over longer periods of time, making it a reliable form of long-term investment.

As a long-term investment, property is ideal if you wish not only to provide a secure future for yourself, but also to your loved ones. You can pass on the property to your children so that they can benefit too..

It is important that you seek the help of a financial adviser before you choose an investment property. They will be able to guide you in making decisions that are in line with your investment goals.

Your choice of property is essential as well. This is where Agem Property comes in. Our company specialises in building properties only in the most strategic locations, with high potential for growth and profitability. We build properties that will help secure your future and beyond. For more information on our services, and our unique approach at property development, please send us an enquiry today.