can i retire early if i start now?
That's a great question, but there's no single answer. Clearly, your early retirement prospects depend on:
The most important factor though is time, but don't despair! Even over 55 there is time to make a BIG difference to your retirement lifestyle because of the rate at which Australian property accumulates capital value. Property investment is a long term investment, but that doesn't mean you need to be 25 to invest and get meaningful results.
We have substantial team of industry-dedicated experts who will gather your information, do a thorough professional analysis and give you a definite answer and options on your investment property options.
Capital Growth
the following table illustrates the increase in value by capital growth of a $400,000 property over 10, 15 and 20 years.
When is the best time to invest in property?
The answer to this question is - when you can! The truth is, no-one knows the perfect time to start. That is why successful people know that the best time to start is when they can because any number of variables and circumstances can change and before they know it, the next boom suddenly happens and they’ve missed out.
Here is one very good reason to have a financial health check with Self-Funded Freedom & find out if you can start now.
"At the same rate of growth over the next 25 years, Australia’s national property values could rise to $2.9 million for houses and $2.1 million for units by 2043"
source: CoreLogic
This will put property ownership out of reach for many of those who wait yet will provide substantial additional wealth for those who act now. Even when property prices are a little flat, investors know it will only be a matter of time before the next boom happens – like it has for the past 120 years in Australian real estate.
One of the biggest lessons you can learn in property is that the real money in property is in the holding of it long term. Property Prices in Australia have always increased long term- see a QLD example below:
Year | Median Property Price |
|---|---|
1960 | $4 400 |
1970 | $9 910 |
1980 | $27 500 |
1990 | $118 000 |
2000 | $173 500 |
2010 | $435 000 |
2016 | $520 000 |
Time in the market is what delivers the most capital growth
As you can see from the graphic below, if your $500,000 investment property increases in value by 7% per annum, it will be worth almost $1.4 million in 15 years’ time, but almost half of this capital growth will occur in the last five years.
This means the sooner you start your real estate investment journey the better because you’ll have time and compounding working longer for you.