Retirement Planning: Including Property Investing for the Best Returns

  • Posted 10 Dec

Retirement Planning: Including Property Investing for the Best Returns

If you’re in the process of planning your retirement, property investing is an affordable and profitable strategy to consider in your retirement planning process.

But before you take the leap, there are some things you’ll need to consider before you buy.


What type of property strategy should you use?

If you’re just starting out in property investing, you’ll likely be looking to use the equity you have in your existing home. But did you know that if you have a self-managed super fund you could buy property through this too?

If you’re looking to use your SMSF to purchase property, seek the advice of an expert before you jump straight in.

You’ll be looking to buy a property that has positive returns, although this can be hard to find straight away. What could be a better strategy is looking at properties that provide a loss, referred to as ‘negative gearing’.

This type of property will cost you more to maintain that it will earn, but offers the potential in capital growth over the long term, as well as providing tax and depreciation benefits along the way.

The main advantage of this strategy is that you could access your growing equity to add to your property investment portfolio, which could see you earning a large profit 20+ years down the track.

Buy and hold is the best strategy for retirement planning when it comes to investing in property.


What location?

This will largely depend on your investment goals. So if you’re utilising your investment property for retirement, then you’re likely looking for capital growth, so you’d be best to buy in high-population metropolitan areas that provide steady property demand.

If you were looking for income up front, then regional areas offer more positive cash flow options.

Research the areas you’re looking at, making sure to look at housing demand and tenant vacancy rates. You want a high housing demand but low-vacancy rates.


What are the risks?

There are always risks associated with any type of investment, and property is no different.

Some of the risks will be related directly to your stage of life. The younger you are, the longer you have to build your retirement fund and vice versa. So if you’re on a fixed income, then you would need to be more cautious with your property investment strategy.

Housing markets are cyclical; this means that you can lose money if you’re not careful, or if you try to sell in a falling property market.

You’ll also need to ensure you can meet the ongoing expenses associated with property investing, such as maintenance, repairs and taxes. It’s best to factor in approx. $100-$200 per week for expenses, per property.



Property investing is a solid strategy for building your retirement portfolio, but you shouldn’t have all your eggs in one basket. Be sure to diversify and consult your financial advisor before making any changes.

If you’re considering property investing as part of your retirement planning, chat to the team at Australian Credit and Finance today to find out how we can help you access your equity or refinance your existing mortgage.

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