subject: Secure your future with Real Estate Superannuation [print this page] The aged pension is currently the primary source of income for the majority of retired people in Australia. Almost 78% of people aged 65 years rely on a government pension, while around 8% relied on superannuation. Property investments were the primary source of income for 12% of people aged 65 years and over and not in the workforce.
Whilst many own their principal place of residence, many of our older households are cash poor. The latest Australian census shows that six out of ten of our older residents live on less than $400 per week. Close to a third live on less than $250 per week. Sadly, one-quarter have no personal income, with 45% largely relying on a government pension or allowance. A further 25% rely on their investments, including superannuation.
How will you support yourself in retirement?
Whilst many own their principal place of residence, many of our older households are cash poor. The latest Australian census shows that six out of ten of our older residents live on less than $400 per week. Close to a third live on less than $250 per week. Sadly, one-quarter have no personal income, with 45% largely relying on a government pension or allowance. A further 25% rely on their investments, including superannuation. There are many benefits found in creating wealth through property investment superannuation.
Benefits of Owning an Investment Property
Steady and increasing rental income from tenants
Increased capital value in the property
Security of ownership and long term gains
A growing asset base for retirement and inheritance benefits for family members
Easier to understand than technical share analysis
Tangibility of the asset
Complete control over asset unlike a share investor
Potential to add value through either improvement or future development
High Gearing/Leverage the ability to access large assets with minimal cash outlay
Lower volatility relative to other investments
Fantastic tax benefits on the depreciation of the physical house
How can real estate options and property superannuation put you in a better financial standing in preparation for your retirement? A property option is a legal instrument by which a choice is granted to acquire a given property. Simply meaning; a Property Option is a document that gives you the choice to buy a property on your conditions, or to not buy if you choose. If you choose to purchase, the seller is absolutely committed at the
original strike price. There are two types of property options that revolve around the time commitment involved: Short and Long Options.
The greatest advantage you have with Short Options is the ability to create cash in a very Short window of time. Short Options are typically somewhere between the day of signing, through to 6 months. The remarkable thing about doing a Short Option is the fact that it no longer requires the process of doing a full Development Approval. It involves locating sites with development potential and on selling them to a developer.
The success of short options lies in identifying potential, but you will need to be very specific with information, research, comparables, building costs and all the other intricate parts of assembling deals. In fact, if you are able to identify intrinsic value, it allows you to be able to assemble a Short Option.
Short options are a lucrative part of Options and offer the kind of cash flow that most people seek in the shortest possible timeframe.
As the name states, Long Options work on a longer time frame. They necessitate engaging consultants and seeing the Developmental Approval process through to completion. When you then on sell the Option to a developer or builder; you are giving them a turn-key solution which is very attractive. Of course the greater effort put into the property, is rewarded with greater profit. Therein lays the advantage of the Long Option.
Learn how to support yourself and create your own wealth during retirement from Mark Rolton and the Massland Team. Enjoy your golden years by utilising Massand's experience at sourcing lucrative investment properties in growing hot spots.
Secure your future with Real Estate Superannuation
