Property investors who are starting later in life may want to rethink their strategy to avoid losing out on the benefits of property investing.
According to property expert Jennie Brown, investors over 50s may stand to lose money over the long and short term as a result of the investment strategy they choose.
“It is true that many investment property strategies focus on earning capital growth and making money on it over the longer term. And it is true that most properties have risen in price at a faster pace than inflation in the last ten or so years. This is why all the experts say that real estate is the most exciting type of investment that there is. It is also a reason why property has done so well and been the investment avenue of choice for so many over recent years. However, the issues with the ‘buy and hold’ strategy when you are over 50 years old are long mortgage terms, and on-going costs and expenses while you wait to make your fortune,” said Brown.
Brown pointed out that over 50’s who were able to purchase an investment property outright are in the best position to benefit from the passive income an investment property provides.
“I would suggest they purchase newer, low cost, multiple dwellings rather than a single, more expensive house, simply because their rental income will potentially be increased with multiple investment properties. If they can get approval to sub-divide from one property into two, or two into four, then that would be ideal and they can make money over a nine to twelve month time frame. Strategies like this are often easier, less time consuming and more profitable than the traditional renovation type strategy.”
With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now
Top Suburbs :
Get help financing your investment
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.
We value your privacy and treat all your information seriously - you can check out