Are you worried about supporting yourself and family when you retire? Will the pension or your superannuation give you enough funds to live comfortably for an expected 20-year retirement and beyond? Many people seem to be under the impression that they need to sell their investment property before their retirement so that they can retire with no debt, but why would you sell the goose that lays the golden eggs?
Holding debt in an Investment property or portfolio where rental income services all outgoings may give the owner the additional passive income to retire more comfortably.
Should you pay down all your debt before retirement? According to ING Direct, 26% of their 65 to 79yr old customers had investment property debt.
For retirees that are living off the proceeds of the sold investment property, their capital may not grow and seem smaller each year as the cost of living increases. It may feel like they are always trying to stretch their funds for just the basics.
Your investment property can help you stay in line with inflation and gain a weekly income in retirement. Additionally, with capital growth the property value will increase and the rent will increase if in demand by renters.
Take action now to get started with an investment property, then when you are comfortable with that aim for more so that you have a higher income in retirement. If you want to retire in a reasonable amount of comfort, don’t plan to sell off your assets; plan to keep them growing and adding more.
Do you want to retire when you want to or when you have to?
Start investing in your future today.