Property Investing As A Retirement Strategy

Transcript

DD:     It’s good morning to Jason Dwyer – managing director of station sponsor, Dwyer Property Investments.  Jason, the Dwyer name is well known on The Coast.  It’s been around for a long time...

JD:      Thirty-five years, Des!  I grew up here and have been involved in the local property market for most of my life.  My brother, Wayne, is also well established in Property… he owns one of The Coast’s most-trusted building companies, Dwyer Quality Homes.

DD:     We’ve had a tough year, and I think it’s fair to say some of us a little bit worried about the financial future…

JD:      Des, it’s understandable that people are nervous about where all this will end up.  Will they have enough to comfortably live on during their retirement years…? Official figures show that only four per cent of Australians retire, financially independent, with an income of more than thirty thousand dollars a year.  When your regular, full-time wage stops coming in, you realise that thirty thousand is a fairly modest amount.

DD:     That’s true, but what about Super…?

JD:      Des, the harsh reality is that superannuation performance and balances are much lower than expected, because of COVID-19.  If you’re within ten years of retirement, you’ll be substantially impacted.  More so, if you accessed your Super, early.

DD:     OK, but what if we’ve got money in the bank…?

JD:      Cash in the bank is actually going backwards!  Savings are earning less than one per cent interest.  Property, on the other hand, is getting a guaranteed rental return of five per cent.  Add capital growth potential and your nest egg will grow, instead of dwindling away. I’ve seen a surge in interest from people whose super and retirement plans have been affected by the pandemic.  They’re looking at property to shore-up their future.

DD:    So, give us a figure, Jason:  how many investment properties would we need to have a good, self-funded retirement?

JD:      It depends on how much you need or want to live on. Based on a healthy five per cent return, two properties – owned outright – would give you an income of fifty thousand dollars a year.  Four properties, one hundred thousand dollars, and so on. It’s a vastly better retirement, compared to the age pension or average superannuation.

DD:     That’s an eye-opener, Jason.  If our listeners want to find out more about how setting themselves up for retirement by investing in property…?

JD:      They can visit the Dwyer Property Investments YouTube channel, or call me for an obligation-free chat today.