Why Invest?

Australians in retirement. 

How long could you live comfortably if you stopped working today? Would anything have changed by the time you turned 65?

The old mentality of spending 30 years paying off the family home and saving a bit extra for retirement doesn’t work anymore.  This is because Australians are evolving.  We want to travel, buy modern technology and have lifestyle luxuries. We spend more of our lives in school getting educated, we want to retire earlier and we live far longer than ever before.  Saving through a shorter work life to fund a much longer retirement simply doesn’t add up.

The old mentality of spending 30 years paying off the family home and saving a bit extra for retirement doesn’t work anymore.  This is because Australians are evolving.  We want to travel, buy modern technology and have lifestyle luxuries. We spend more of our lives in school getting educated, we want to retire earlier and we live far longer than ever before.  Saving through a shorter work life to fund a much longer retirement simply doesn’t add up. By the age of 65, 29% of Australians will have passed away, 63% will be dependent on the government or poor, 3% will still be working, 4% will be financially independent and just 1% will be wealthy (Australian Bureau of Statistics).  

The lay of the land in Australia currently is such that approximately 87% of the population retires on the aged pension.  As of 2022, that benefit gets you approx.. $21k p.a. for an individual or $31k p.a. for a couple.  The reality for most Australians is that they will have worked their whole lives only to enter into their twilight years on not a lot more than $400 per week.  Imagine receiving your wage every week and setting aside just $400 for yourself to last you the week.  Try it! Think about all the things you may need to live without or simple pleasures that you will have to sacrifice in order to get by.  

Take this example;

Let’s say we could save $150 per week.  If we just continued saving over the next 10 years, we would be able to save somewhere around $78,000.  Not too bad. 
Alternatively, if we had a deposit or equity in the family home, we could invest into a high-performing investment property worth around $750,000.  Rather than saving the $150 per week, we used it to fund the ongoing costs of holding the property (more on that later).  Assuming the value of the property doubled after 10 years, the property would now be worth around $1.5 million.  You would have added an additional $750,000 to your balance sheet.  That is $750,000 that you wouldn’t have had to work for!
  $150 per week ---> After 10 years
   Savings only ---> $78,000
   Investing in a $750,000 ---> $750,000

Now imagine being able to repeat the process again and again… it’s powerful stuff!

REMEMBER NOT ALL PROPERTY INVESTMENTS ARE CREATED EQUAL.

Some properties will generate good cashflow and exceptional capital gains, others will deliver far more of one in lieu of the other and others still have the potential to place undesirable drains on both your cashflow and overall equity position.

So, the question becomes, how do you find a property that ticks all the right boxes?
One that delivers both the immediate returns required to sustain your portfolio in the here and now, as well as a healthy compounding effect that sees you with sufficient equity on which to retire in years to come?
It’s all about the selection formula that we apply to the acquisition process. This is something that you will learn through our sequence of meetings.

Australians in retirement.

Take this example;

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