If you do not own a home by the time you are 45, you probably never will. This is the conclusion from an alarming new study stating that the next generation of retirees may facing an “impoverished” scenario unless they have some property under their belts.
The report, done by Swinburne University, has predicted a worrisome scenario for the next generation of retirees, particularly for those who do not have some kind of ownership of property prior to the ages of 45 – 50.
Typically, Australian Real Estate has always been the bedrock on which “every day Aussies” have built their wealth upon. However, if the current generation of renters (who some have dubbed “Generation R”) do not control some kind of property before they hit their mid 40’s, this very same market may turn into a “source of impoverishment” where they will become more vulnerable to changes in economic conditions, and unforeseen changes in their lives (divorce etc).
There’s no doubt that entering the property market for the first time can be a significant challenge no matter what stage of your life you are currently in. But the good news is that most challenges also have solutions, and finding the best ways for those on a typical income to still head towards the retirement they deserve, is something I discuss in my next live event.
For example, here is a strategy that is rapidly growing in popularity among those in Sydney to assist them in getting a foot hold in the market they desire. To do this, many Sydney-siders are now looking outside their backyard into more affordable, yet economically strong, markets for their capital growth.
Let me explain…
These more affordable growth markets put little to no pressure on your pocket, and thus doesn’t cramp the lifestyle we all want to be living with our families, which is obviously a far better situation to be in than paying large mortgages.
But the real kicker comes in a few years time, once the capital growth (or equity) is achieved, as it can then be used to re-enter the Sydney market before the next wave of growth occurs.
Basically, your investment funds your family home, not the other way around.
It’s strategies such as these that we explain to our clients at our regular, complimentary seminars. Our final date for 2016 is fast approaching, so please come along to this complimentary information evenings located near you. Seats are limited, so to reserve your spot, click here now.