7 THINGS TO CONSIDER WHEN IT COMES TO PROPERTY & RETIREMENT.

We have outlined 7 things to consider when looking to use property to retire.
Firstly there is no quick and easy solution. When it comes to retirement and how much money you need to retire it’s different for everyone and how “comfortable” you want to be.
 
1. Keep Watch. When working out how much money you need to retire and when considering the right properties to invest in, you need to look at several factors not just the rental yield. Closely monitor even slight variations in rental yield and capital growth from year to year as they can throw your calculations out and force you to adjust your figures.
 
2. Consider capital growth not just rental yield. Looking at just the the rental yeild doesn’t give you the whole picture capital growth makes it possible for you to buy more properties by using the equity you have in your initial investment property to fund the deposit for your next purchase. It also gives you the options for example you could sell off a portion of your portfolio to pay off your investment loans, but retain some properties to provide an income in retirement.
 
3.Use Equity. When the property’s value increases so does your equity. Not only can you leverage this equity to purchase your next property, but when you have multiple properties you can also use it to access a line of credit from your bank. This strategy should only be considered with help and planning from financial professionals.
 
4. Plan and Set Goals. Think about when you want to retire and what you need to do before then to make it happen. For example, if you’re planning on retiring in the next 20 years and you need five properties to produce your desired income, you’ll need to purchase at least a new property every four years to meet your goals.
 
5. What about your family? Other factors that need to be considered when calculating how much you need to retire is whether you want to leave anything to your children or family members after you pass away. Alternatively, do you still want to be coping with the stress and workload of owning multiple investment properties in your final years or would you prefer to pass those duties on to your children?
 
6.Realise the risk. It’s essential that you’re aware of the risks involved with property investment before you get started. If you own several properties and the market experiences a downturn, how would you manage financially? Remember to diversify your portfolio for added protection against risk.
 
7.The sooner the better. Property investing is a long-term investing strategy, and acquiring multiple properties takes time. The earlier you start, the more capital growth you will be able to experience and the larger portfolio you will be able to build.

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