As you approach retirement age, your financial situation starts to change. For many in this age-group, the children have moved away (at last) and you are getting closer to paying off your mortgage.
With the house empty and your finances stable, it’s the perfect time to focus on solidifying your future and investing in property is a fantastic place to start.
First up, it’s important to understand that the act of buying a property is in itself an investment – especially in this current property market. As citizens flood back home to Australia to escape the global pandemic, we are seeing a shortage of properties available, and rental incomes steadily increasing.
For those who have equity and savings, this presents a unique opportunity. Here are our top 5 reasons why property investment in your 50s might be right for you:
You are financially experienced
By the time you’re 50, people have generally accumulated a great deal of experience regarding financial matters. From paying bills, property taxes and homeowner’s insurance, managing household and business budgets to managing health care expenses, mortgage companies and your own personal financial assets, you know how to keep track of your money.
You have life experience
As your age creeps up your life experience and maturity grows. You know how to deal with people personally and professionally and can recognise areas where you may need some extra advice – this recognition is a great sign of maturity. If you are not sure what constitutes a good investment option, our team at ACTON can help.
You have previous Real Estate experience
According to research more than 70% of Australians have bought a home – and that number has stayed fairly steady for over 40 years, which means that most people over the age of 50 have bought at least one property in their lifetime. That means most people have experience locating, financing, managing and selling homes.
The Kids have left home
Of course, this varies from family to family but, for most over 50s, once the children have oved out. It means you’re no longer their primary supporter (you hope), the family home can be downsized and you have more freedom to use your house as you wish.
The likelihood is, if you’re over 50 you will have accumulated significant assets, and if you are a saver, planner and or investor, you’re more likely to be at your highest net worth in your 50s. Which means you have equity or money to invest, and with the market looking this positive, it could be the perfect time to explore real estate options in WA.
It’s not too late to be investing in your 50’s and the current real estate climate is what makes this a huge opportunity for financial growth.