Have you heard the insightful quote that states, “The difference between a dream and a goal is a deadline”? This holds especially true for your financial future.
We encourage you to set property related goals for your future. No matter what stage you’re at, your current financial position, or your age, you can create a property related goal that can help you to achieve your dreams.
If your dream is to set yourself up for a well-funded retirement, investment properties may well be your best option.
It doesn’t take the accumulation of too many properties to retire on a reasonable yearly income. In fact, owning three to four solid investment properties can return you a $100,000 per annum income (based on a 5% yield). So what are you waiting for?
If you have dreams for a better future, set some financial goals (using specifics and applying a timeline) and start working toward them.
One key reason to consider property investing is because property rises with inflation. Cash in the bank doesn’t. And inflation is almost always guaranteed. A real estate asset can continue to return you income for as long as you own it, while it’s also increases in value. Then, when you sell it, it provides additional returns when you realise the equity that’s been built up over time.
There are always the property investment naysayers who predict real estate doom and gloom, but it hasn’t happened in Australia, at least in living memory. We are also negatively too often compared to the USA, however in Australia, we are heavily regulated to avoid catastrophes such as what happened in the States. The recent Global Financial Crisis proved this, and Australia hence remains stable. There have been on occasion downward blips (market adjustments), but we have also seen recovery and growth. As an asset class, property continues to show steady returns especially over longer periods of time.
Your first investment property purchase will most likely be the hardest as everything is new to you and, let’s face it, it’s a big investment. But, once you’ve established that foundation and you’ve got an asset from which you begin to see cash flow, the next purchase and the next purchase after that become easier and easier.
Don’t let your dreams pass you by because you haven’t translated them into goals. Consider property investing as a tool to fund your dreams. And while you’re at it…don’t forget to dream big!