By Kay Rivera
Strong growth in investment properties and holiday homes as a financial asset was identified in the latest report by Australian Housing and Urban Research Institute (AHURI). “In 2002, around one quarter of households approaching retirement had a second property and this grew to 30% in 2014,” the research network said.
This growing appetite for acquiring more properties, specifically residential ones, is linked to the retirees’ increasing desire to avail of their Age Pensions.
“The research also suggests that retiring householders aged 55+ are not re-structuring their financial assets or boosting levels of owner-occupied housing to make sure they are eligible for the Age Pension,” AHURI added.
The data collected by Household, Income and Labour Dynamics in Australia (HILDA) from 2002 to 2014 reconcile with this observation, having recorded that the share of owner-occupied housing in a retired household’s asset portfolio has fallen from 46% in 2002 to 39% in 2014.
While the report highlighted an important market insight, it also acknowledged that economic challenges associated with an ageing population present stark policy choices for the Australian government.
At present, the Australian retirement incomes system consists of four interconnected pillars: the Age Pension, mandatory savings in the form of superannuation, private savings and owner-occupied housing.
The 2018 Budget: Impact On Property
Home Loans Could Be Harder To Obtain
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 with your investment property
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 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 an appointment is free.
We value your privacy and treat all your information seriously - you can check out