By Cam McLellan
I’ve been asked a number of times whether it is worthwhile investing in property if you’re getting to the later stages of your working years. Older people are obviously going to be more affected if there is a major correction or a downturn in the market.
Even with the downturns or stagnation that you can expect over a 10-year growth cycle, the market will continue to improve in the long term. So I ask you to consider – are you planning to live longer than 10 years? Hopefully the answer is yes, so even if you were caught in a downturn, you should experience a whole growth cycle and see the market pick up again. But you have to be smart about your investments, as I always say, the absolute worst day you could buy would be at the peak of a boom because just after we can expect to see a dip, slow correction and then a big upturn.
So if you’re going to live longer than 10 years, yes you can buy property. If you invested $80,000 – $100,000 to purchase a median priced property today, in 10 years you will have $450,000 extra equity that you didn’t have before. In between, you’ll experience benefits like claiming tax deductions through depreciation, interest and all those sort of things. I see it as a good investment.
Remember, if you’re concerned about investing and what you should be doing we are always here to help. Give the team a call on 1300 OPEN CORP and they will take a look at your situation.