How can property help me through retirement?
Retirement is a very important time in our lives. Not only is it a period when we get to relax and enjoy what life has to offer, but it's a major milestone we need prepare ourselves for financially.
We spend most of our working lives putting away money toward retirement, saving as best as we can.
However, keep in mind that you can still have your money work for you once you reach the retirement stage. And that's why investing in property makes a lot of sense.
Why invest in property?
Oftentimes, investing in property is an easy transition for most people. Instead of trying to understand the complexities of the stock market or how bonds work, most investors already own their own homes, know how the process works and what their responsibilities are.
This can make it a much more attractive type of asset to invest in, especially for homeowners who already have a mortgage. This also means that property is a great avenue for first time investors and those looking to achieve a secure retirement further down the line.
Some may think they don't have the money to invest in property, but actually, many can simply leverage the unused equity in their loan to buy a home. This can cut corners to growing your wealth, as you've already got the money ready to go!
Peace of mind for retirement
Unless you're managing your rental properties yourself, property can be quite a hands-off type of investment. This gives you more free time to do the things you've always wanted, instead of managing your investments on your own.
Property can also provide you with a steady stream of rental income, which can supplement other income and give you security through this important period of your life. This can be extremely beneficial in your golden years, as your rental income will basically replace your pay cheque that you've likely become so used to throughout your working life!
Remember, it can be beneficial to own more than one property during retirement. This is because it gives you an opportunity to diversify your portfolio and help to minimise your risks. Instead of putting all of your eggs (or in this case your nest egg!) into properties in one area, you could spread your purchases throughout many different investments to reap the benefits.
To get off on the right foot in the lucrative world of property investment, make sure you speak to a wealth coach to assess your options.