The long and short of it is—we believe you’re never too old for anything in this life. That’s my motto, at least. But how do large banks, lenders, and the property industry regard older investors?
You could be wondering if you’re too old to invest in property, fearing you’ve missed the boat and will no longer have the opportunity to grow wealth through real estate. At the other end of the scale, some investors fail to consider whether they might be nearing the end of their property buying career.
The banks are only willing to lend you money for so long; when they can see retirement in your near future, the idea of extending you a 30-year home loan term suddenly seems less appealing!
Wherever you are on your property journey, it’s essential to consider where you are financially now; where you wish to be financially when you retire, and the timeframe between now and then.
Let’s examine how you can navigate this tricky period:
You’re in a great position to start building a property portfolio through home loans that will set you up for life! If you plan your investments wisely, you can achieve financial freedom in just a few decades.
Remember, you have 30–40 years of available time, so start by focusing on building your asset base. Once you have some equity built up, you can transition into the cash flow phase of your property journey.
You’re not old if you’ve only blown out 40 candles recently. You’ve got plenty of time left to make some profitable investment decisions.
The sooner you invest, the greater your eventual profits will be, thanks to the power of compounding over time. The time to get into home loans is now. Your income is much higher than in your 20s and 30s, so you’ll have a few disposable dollars for investing.
For example, buying three properties in your 40s valued at around $700,000 each will be approximately $2.1 million. But if you buy the correct type of investment-grade property, they could triple that value by the time you retire.
Does a $6 million (or more)portfolio sound like a strong enough retirement nest egg to you? If it does, you must get your home loan today.
If you’re just starting to invest in property in your 50s, it’s not too late. You can usually get loans for 25–30 years to finance your portfolio, as lenders are generally willing to accept that people can work beyond the retirement age of 65. Not only that, but since this season may be where you have the highest salary out of your previous decades, lenders are happy to work with liquid, able-paying clients for home loans!
When starting, it’s essential to have a clear strategy with the goal of growth. You can create this growth by renovating or developing properties if you’re willing and able to take on the risk.
Is it too late once you hit your 60s and beyond! Absolutely not! There’s still a chance for you, but you’ve got to talk to a mortgage broker ASAP, like Shore Financial! We can help you get guarantor home loans in Australia, so call us at 1300-416-700 or visit our website and click Talk to a Broker right now!
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We appreciate your message and a Shore Financial broker will respond to you within a few short days. In the meantime, here’s a few links to keep you occupied.
