investing for retirement

Hi Terry,

That is a very broad question with only a few factors to consider to deliver an entirely helpful response… I suggest, (if you have not already done so) mapping out the entire picture with a financial planner/accountant to deliver the greatest outcome. Good financial planners are worth their weight in gold especially if you are a begginner investor.

It also depends on how much you want to be involved in the maximisation of your returns from your investment. If you purchase a property to rent out, will it be negarively geared (ie. costing you money all the way up to your retirement)? Based on the fact that it looks as though you want to buy in Ballina or the SS Coast, how are these individual markets performing? Will there be good capital growth over the years you have left until you retire (considering that when or if you sell that your gains will be taxed and eroded by inflation)? On top of that if you sell, will that lump sum of cash be enough to support you through your golden years? If you move into the property when you retire you will cease to own an investment with good potential to make you money (excluding capital gains which cant be realised until you sell).

What about on the flip side if you worked on developing a positively geared property that would deliver a consistent flow of cash into your back pocket… Or if you were really  keen you could do multiple strategic investments to take home multiple lump sums of cash…

But like all investments they are (or should be) a vehicule to reach your goals. So therefore you must map out what you actually want out of your investment and how you are going to get from A to B. But like I said a good financial planner (preferably someone who is involved in the world of Real Estate Investment) is someone you should seriously consider having on your side before you embark on your exciting path of property investment.

There are good deals to be had, I hope you find one Terry.

Kindest Regards.

Hi Terry,

whilst I am not retired (I did for a week until i got bored), I invest in areas with higher capital growth and rental yields than the areas you mention which help me build a larger property portfolio. If you are after cash flow than you want to achieve as much rent as possible obviously. From Ballina to Noosa rental yields are very low and so has capital growth been. I live in Noosa and am constantly assessing the situation in south east Qld for investment. You may find stronger growth in Qld than NSW. ABS predicts 71% population growth in NSW compared to 161% in Qld in the coming future. So I would put my eyes on Qld over NSW when it comes to investment purposes. The majority of this Growth will be in regional Qld due to growth and longevity of the mining industry.

In regards to buying something to retire in, it depends if you know what type of home you want to retire in. 10 years is not the largest window to work with, so its important you get the growth at the earlier stage of that period rather than later so you can buy another property if you wanted or needed for future cash flow.

I own and sell investment properties all over Qld so if you need advice on any particular area I am generally quite over it all but not so much NSW i will admit.

Hope this helps

Josh