06 Nov Wealth Creation Through Property Investment
Whether you are an employee or running your own business, chances are that the money set aside in your superannuation savings will not be enough to fund your retirement.
If that sounds like your situation, there is another option – building wealth through savvy property investment. But is it ever too late to start building your property portfolio?
By speaking to your accountant or financial planner, together with a trusted mortgage broker, you’ll have a clearer understanding of what is possible for your own financial circumstances – and how a property investment strategy might just help you take the stress out of your retirement money worries.
According to recent figures from the Australian Taxation Office, there are more than 1.7 million landlords in Australia. Of those, more than 25% own more than one investment property.
Think wealth creation through property investment is the domain of the already wealthy? Think again…
The majority of property investors in Australia are not high-income earners at all, with most falling into the income bracket of $30,001 – $75.000.
Reasons To Choose Property Investment
There are a number of positive reasons to choose property investment as a proactive way to build wealth. These include:
- Wealth creation
- Planning retirement
- Tax minimisation & other tax benefits
- Capital growth
Regardless if your financial goals are long-term such as wanting to fund a secure, debt-free retirement, or short-term such as seeking greater capital growth opportunities to benefit from a housing boom, investing in property can offer a viable solution with the right planning.
Securing the best deal on finance is just as important as choosing the right property – in fact, in many cases, it can be even more critical.
The reason? The price of the property you are able to buy is dependent on the amount of financing your bank or other financial institution is comfortable lending. If the rich really do get richer, it’s mainly because they often have better access to better finance choices.
Top Finance Tips for Property Investing
Want to make a big difference to how much you can borrow for your next property purchase?
Reduce Credit Card Limits
Reduce the credit card limits on unused cards and pay down debt on existing cards. To calculate how much you can borrow, potential lenders take all your credit cards into account – whether you use them or not.
Consolidate Your Debts
Personal loans – including department store cards – not only cost you in higher interest rates but they also reduce your borrowing capacity. Before applying for your mortgage, pay down personal debt as much as you can, if not all.
Loyalty is Over-rated
Shopping around for different lenders, even if you’ve been a client for years.
Using different lenders gives you a better chance of increasing your borrowing ability and staying control of your assets.
Use an experienced mortgage broker
The most positive finance tip is to have a mortgage broking specialist working for you – finding a competitive loan that suits your circumstances.
For the right advice on choosing the right mortgage for your individual circumstances, contact Aspirus Financial Services at +61 488 814 148 today.