Investing in property for retirement financial security is a popular choice for many people. After all, property is one of the main pillars of most diversified investment strategies. But all property is not created equal, and you want to know you’re putting your money into a property that is going to be beneficial for your retirement, rather than a property that’s going to put strain on your money and your time.
There are two main benefits to property investment: cash flow from rental income, and capital growth over time. During retirement, cash flow is often the most important aspect for many investors. While it’s great that a property will gain value over the years, it’s during retirement that investors want to see their investments deliver an income, and a property that delivers a high rental return will put more money in your pocket when you need it.
For retirement, a safe and steady approach will most likely lead to a more secure investment. There are a few boxes that you should be ticking to ensure the location you’re looking at is suitable for a long-term investment.
Consider the local infrastructure. Are there hospitals, schools or universities nearby? What is transport like? What about the local economy – is there a mix of industries and services, small and large businesses? It’s important to take stock of the area: locations that support healthy, stable communities will offer good stability in the long run.
One investment option that doesn’t always spring to mind is serviced apartments. For retirees, serviced apartments offer a range of benefits that aren’t as easy to access in traditional residential property investment.
For one, all the research listed above is done for you. Teams of skilled researchers work closely with corporate customers (who frequently use serviced apartments on business trips) to identify locations that meet a strict criteria, which includes considering infrastructure, the health of the local economy and local demographics. For investors, this means cutting down on the leg work to find the ideal location.
Secondly, serviced apartments offer retirees a reliable source of income. When you purchase a serviced apartment, you sign a long-term lease with a management company, who then sub-lets your apartment for short stays, like a hotel. You, however, are guaranteed the income from the management company, whether the apartment is occupied or not, taking away concerns of loss of income due to vacancy. Similarly, the management company looks after day to day maintenance, cleaning and repairs, meaning you’re not hit with any nasty surprises.
And it’s not as though you’re giving up capital growth for steady cash-flow. Serviced apartment management companies schedule regular rental reviews to ensure owners are enjoying a good rate. While your property is unlikely to skyrocket like some areas have in recent years, you are likely to enjoy good growth long-term, which once again offers retirees security during the course of their retirement.
Serviced apartments are worth a look, especially for property investors in their retirement looking for an investment option that takes some of the leg work and ongoing uncertainty out of buying a property.
Quest Properties has over 28 years’ experience considering the location, infrastructure, job growth opportunities and return on investment to ensure their investors have long term security.
There are over 5,000 strata titled apartments owned by private investors who enjoy exceptional returns and enviable cash-flow benefits.
Quest Properties offers affordable property investing options with high rental returns (commonly around 6.5% plus) and attractive tax deductions. A Quest property is a secure, high yielding investment with extra benefits like no property or letting fees.
Whether you’re looking to invest, exploring the various benefits or would like an update on all our property news, simply register your interest and we’ll tell you everything you need to know. https://www.questproperties.com.au/register-interest-quest-properties
*Original article published with Your Investment Property can be found here.