EXPECTING YOUR SALARY TO BE ENOUGH TO COVER YOU IN RETIREMENT
Many Australians are caught in an old paradigm, their parents’ and grandparents’ idea that if they just work hard enough, they’ll earn enough and save enough to retire on.
To do this, you would need to save about $20,000 per year. The main reason why we don’t save the way our grandparents did is because our lifestyles have radically changed. We simply can’t live off one wage, a small house and single car.
Our retail is much more commodified and disposable, ensuring that we are constantly lured by the next big thing. As Australians, we spend increased salaries, bonuses and tax returns before we’ve even received them. We upgrade things in our homes, we go on holidays and we get bigger, faster cars.
More income, without a focus on financial strategy, is just as dangerous as not earning enough income.
Earning a passive income, especially one that is re-invested, is much more secure.
EXPECTING YOUR SUPERANNUATION TO BE ENOUGH
Many Australians believe that by setting aside 10% of their income, that investing in their superannuation will be enough in retirement.
Most Australians will be reliant on the aged pension to retire comfortably. With the aged pension most single Australians can expect to retire on just over $42 000 per annum. For most people, this means living on less than we currently do. Significantly so. Did you really work all those years and all those long hours to retire on enough for the occasional holiday and meal with friends?
Is your goal to accumulate enough in a lump sum for a sub-standard living and hoping that you don’t outlive your savings?
Wouldn’t you prefer to create a passive income stream that pays every week for the rest of your life? And something to pass down to your children, hopefully providing them with some security?
NOT KNOWING HOW TO INVEST WELL
This is so common with many of our new clients. Many of our generation simply weren’t taught how to invest. Most of us don’t even save well!
I am very heartened to see so many young people taking charge earlier than many of my generation have. Our youngest client is 21. At 21, I was saving for my next overseas holiday. Travel was all I was interested in. It’s great to see some younger people seeking out professional guidance sooner rather than later.
The earlier you start building a property portfolio of quality assets that generates passive residual income, the sooner you’ll be financially independent. And nothing feels better than knowing you’ll be protected from the curve balls that life keeps throwing.
TRYING TO DO IT ON YOUR OWN
Last year I heard someone say that if you threw $400K into the Brisbane market, you couldn’t go wrong. Sadly, I’ve seen many people go very wrong. Despite Brisbane being in a very strong growth position, there are clear areas of over supply emerging from sub-par quality builders.
Our researchers at Calla Property reject 95% of property on the market and like the last cycle, many investors will get it wrong and will need to sit out another cycle before realising any real appreciable capital growth.
Look for advice from specialists who conduct real research, not just regurgitate the research provided by the developers. Look for advice with a proven track record. And importantly, look to buy from a reputable company who will happily provide access to current clients and who can manage the whole property investment solution, and at no additional cost to you. Most of our clients are too busy to manage the day to day affairs of their properties, so we do it for them. From exchange and settlement through to the ongoing management, we can do it for you.
IF YOU’RE IN A POSITION TO INVEST, DON’T DELAY
The longer it takes you to take the plunge, the more expensive it will be.
We’ve seen property prices increase significantly in Brisbane, for example, in the past year. This time last year it was easy to find good quality property for a $350K budget. Now you would need at least $400K - $500K.
Many people assume that good quality advice is expensive, and even then they’re not sure whether it can be trusted. Taking the plunge is necessary to secure your financial future.
I’ve seen clients overcome all of the above, but because of their fear, or inability to trust they are easily swayed by backyard BBQ chatter or information found on google. The problem with this, is that even if you had the figures in front of you, it doesn’t necessarily mean you understand how they go together in the investment landscape. What a friend or relative tells you may be right for their wealth creation strategy, but not necessarily yours. The problem with google is that a lot of the available information is historic or irrelevant, if it’s published by someone with a different investment focus to your own.
Calla Property researchers, not only conduct their own research, but buy research from respected property research houses and forecasting agencies. This research is not easily available to the general public. Trying to piece together bits of information you don’t quite understand is unlikely to lead you to the best investment outcome.
SO WHAT CAN YOU DO NOW TO SECURE YOUR FINANCIAL FUTURE?
If you want to take advantage of the returns that the current growing property markets offer, now is a great time to consider your options.
Ring Calla Property to speak to a trusted property investment specialist. We take the time to show you how we research the markets, what’s involved and how easy it is to get started. For seasoned investors we can manage your entire portfolio and ensure you’re on the right path to financial freedom.
Property investment is all we do. We love it. And we’re very good at it. The best news, is that it doesn’t cost you anything.
Don’t delay – call (02) 9016 2852