Retirement signals the end to your working life and the beginning of a new phase in your life, you will receive the government paid social security allowance, but will it maintain the standard of living you have been accustomed to? Start planning for their retirement as soon as you can to ensure you enjoy your retirement.
Saving, Kiwi Saver and other retirement schemes are one step and the next step is to find lucrative investment opportunities. Though stocks, bonds and others seem tempting enough with the promise of high returns, their volatility is off-putting.
Property Investment NZ offers one of the most rewarding investment opportunities, specifically buying investment properties, will help to have more than sufficient funds for retirement.
Investment properties are those which have been purchased solely with the intention of seeing their value appreciate and yield high returns. These have a high probability of rising in value and are highly saleable as well.
Options when buying investment properties for retirement
- Mortgage – Buying an investment property usually requires a large capital investment. One option is to save the deposit, and when a down payment amount has been collected, take a mortgage out to pay for the property. Paying the mortgage off before retirement will mean you are mortgage free.
- Buy and Hold – This strategy works for those investment properties that are lower priced, since they may be falling in an upcoming area yet to be fully developed. The benefit of this is that a property can be bought relatively cheaply and then you wait for it to appreciate.
- Flipping – This term refers to a buy and renovate and sell in a short time frame. Flipping is all about buying them cheap and selling them quickly – even for a small profit, and using this amount to upgrade to a better property.
Advantages for investment properties in retirement
- Brings a higher returns in the form of capital appreciation
- Gives you a passive income in the form of rent
- Can help to meet expenses
- Provides capital to pay for expenses like medical and travel
- Gives you a peace of mind and the knowledge that you are in control of your financial life.
Saving for retirement with investment properties is safe and almost always brings good returns, leaving the investor financially independent and not needing to feel insecure.
| For further reading on Property Investment NZ, click on the articles below: Property Investment – click here Property Mentoring – click here Apartment Investment – click here Auckland Property Investment click here |
