Self Funded Retirees are Feeling the Squeeze
Self Funded Retirees are Feeling the Squeeze
Self funded retirees are feeling the squeeze at the moment with interest rates falling. If they have the bulk of their money in the bank or short term investment deposits the returns are low and getting lower.
The Reserve Bank of Australia lowered the official cash rate on the 2nd of February, 2015 at their monthly meeting. Many retirees will be devastated by this news. Especially if the majority of their savings is invested in cash products. Talk of further rate cuts, potentially to an official cash rate of 1% over the next 12 months must positively terrify the elderly. Many can barely make ends meet now and the future could appear worse, not better.
It makes sense to me both personally and when I am giving advice to our clients at Buyer Solutions that investing needs to be pro-active these days to ensure a comfortable retirement. I know that the Global Financial Crisis in 2009 hit peoples investments hard and 5 years or so later, they have not fully recovered. If you don’t want to rely on the old age pension when you retire, then you will need to give this some thought.
If you are in a position to invest in property, regardless of whether it is your home or an investment property that you will lease out, then make sure you buy well. As I have said previously in my posts and many, many client consultations – “Not all property is a good investment”. Furthermore, to create wealth, you need to grow the equity in the asset and this takes time and careful property selection when buying. The old saying ” you make your profit when you buy” is only too true with real estate.
So my advice is be pro-active. Nurture your investments. Act before you are too old. Get professional help when buying investment properties from a REBAA accredited Buyers Agent in your state or ring me for a referral to one that I know will help.
In terms of geting some advice from the Buyer Solutions team, you don’t have to be ready to buy to book a consultation and do some forward planning. We are happy to help.
For up to date information on what’s happening in real estate in Melbourne, contact Janet at jspencer@buyersolutions.com.au or 0418 101 146.
By Janet Spencer
Award Winning Service, Buyers Agent, Buying property, Housing Affordability, In The Media, Investment, Investment property, Janet Spencer
+61 39816 8555