Related Articles
VIEW ALL ARTICLES
Your 40s is an important time to start building wealth for retirement, with these strategies designed for mid-life investors.
If you’re in your40s and thinking about investing in property, then we have some good news for you. Whether you’re keen to amplify retirement savings, create a passive income stream or build generational wealth with a portfolio of properties, it’s not too late to start.
The financial whirlwind of your 20s and 30s is behind you, and you’ve probably come out the other side having learned a few things about money. But your life is no doubt still busy in your 40s with work, family and/or other commitments, so it’s easy to overlook some financial essentials during this ‘middle’ stage of your life.
However, it’s crucial that you don’t.
The reality is that you’re closer to retirement in your 40s than you were to the start of your working life, so it’s important to start taking notice of your super statements. However, for many Australians, our super isn’t going to be enough to retire comfortably on. And that’s assuming you also receive a part Age Pension to supplement your super!
If you want to retire earlier than 67 like many Australians do, you’ll obviously need a lot more than what you think, considering the impact of inflation – a $5 cup of coffee today will cost more than $9 in 20 years. What's more, we’re living longer, so 20 to 30 years retirement income needs to be factored into your plans.
Buying one or more investment properties in your 40s can provide a lucrative supplement to your super balance. History shows that Australian properties Australian properties in strategic locations substantially increase in value over time. They also generate ongoing rental income.
In addition, an investment property can provide you with substantial tax benefits during what are likely to be the peak earning years of your working life (i.e. your 40s and beyond). Unlike your residential home, investment property expenses (like rates, insurance, repairs and maintenance) are all fully tax-deductible.
If you are currently paying off your home, then you can use the equity (ownership) that you have built up in your home as your investment property loan deposit. Your equity is the current market value of your home less the amount you owe on your mortgage.
Many homeowners across Australia have seen their equity increase substantially in recent years due to the property price boom.
Alternatively, if you have a self-managed super fund (SMSF), then you can use your super funds for an investment property loan deposit. You cannot do this if you don’t have an SMSF.
An investment property can provide substantial tax benefits during what are likely to be the peak earning years of your working life.
Start by defining what you want to achieve with property investment. Are you looking to secure additional income for retirement, build a steady cash flow, or grow a legacy for your family? Once you have clear goals, develop a strategy that aligns with your objectives, focusing on factors like your investment timeframe, risk tolerance and financial capacity.
Independent research is crucial in identifying strong investment opportunities and making informed decisions. DPN looks into local market trends and analyses data on rental demand, vacancy rates and property appreciation to recommend the high-growth areas they invest in.
Partnering with a property investment expert can save time, minimise risk and provide valuable insights. An experienced advisor can guide you through financing options, tax benefits and property management, helping you successfully navigate the complexities.
At DPN, we have house & land packages to build multi rental homes such as dual income and duplexes. Investing in new multi rental homes allows you to:
Investing in property in your 40s is a powerful step toward building wealth and securing your financial future. With a clear plan, thorough research and the right support, it’s never too late to start creating a lasting legacy for yourself and your family.
.svg)
