Turning 50 can certainly creep up on you – faster
than some may like. It is surprising to find that home ownership in the 55+ age group has dropped over the last 25 years.
According to research by the Australian Bureau of Statistics:
- In 1990 about 70% of 55-64 year old’s owned their home
- In 2015 only 47% of this age group owned their home
That’s a massive decrease of home ownership for this demographic.
During the same period, the percentage of those carrying a mortgage debt rose nearly three times from 12% to 31%.
Retirement may seem a long time away in your early 50s.
However, while most Australians believe they will own their home outright when they retire, many Australians in their 60s and 70s are finding themselves knee deep in mortgage debt. And more and more retirees are using their superannuation to pay down their mortgage. So how much will that leave to live on?
Life has certainly changed in the last century. We are living 20 years longer. Australia has one of the highest long life expectancies in the world. In fact, the United Nations World Population Prospects suggests life expectancy in Australia in 2022 to be 80.9 for men and 85 for women.
We are not just living longer – we are living well for longer.
The World Health Organization has documented its latest figures showing the average 60 year old Australian can expect another 19 years of full health without disease or injury.
With lockdowns appearing to now be on the way out, travel agencies have never been busier. Retirees have hit the skies, are travelling more and have higher retirement expectations than our predecessors of 20 years ago.
So
1. We are living longer
2. Are healthier for longer
3. Want better lifestyles in retirement, BUT
We put off planning for our future!
What are we waiting for?
- the kids to leave home?
- our share portfolio/superannuation to come to the rescue?
- to repay the mortgage first?
- the kids to finish university?
- redundancy hoping to come our way?
- having that overseas trip we’ve been promising ourselves first?
- that inheritance? (You could be in your 70s before you get that these days.)
Time and capital growth don’t wait for anyone.
We can never predict the right time to invest in property. However, with rising rents and more renters in the market, it seems like it could be a great time to be
a landlord right now.
As you can see in the following chart, from the last three decades the median house price growth in capital cities has risen (some capital cities more than others) and there are some common fluctuations in each city as well. If you look at the chart from 2010 to now, all cities except for Perth have seen significant growth.
With your 10 to 15 years left of good earning capacity you may not be too old to start thinking about how to fund your retirement through property investment. You just need to select wisely. Make sure you do the research first or obtain professional help from property investment specialists.
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