Don’t become another statistic in 2016
Although it’s widely known that building a large property portfolio can create significant personal wealth, a staggering 3 out of 4 investors only own 1 investment property.
Whatever your reasons for becoming a property investor, be it to retire earlier or provide a more financially secure future for your family, simply buying just 1 property will unlikely be enough to achieve your goals.
The truth is that investors will generally have to build a portfolio of at least 3 – 5 properties to generate sufficient wealth – that’s provided these are high-performing properties as well.
To some, this might sound like a big undertaking but with the correct strategy, financial structures and by acquiring the right properties, it’s within reach of most investors over the longer term.
Despite this, statistics from the Australian Taxation Office show that 72% of property investors own just 1 investment property.
The reasons why investors never go on to acquire successive properties vary significantly.
Some lose sight of the big picture, they might become distracted by particular life circumstances or they may choose to go on an overseas holiday or buy a new car instead of investing.
Others may even believe that they’ll be okay owning just 1 investment property because they’ll also have superannuation as well as the government pension to live off.
However, for many people superannuation alone will not provide them with the lifestyle they want.
Furthermore, your government pension starts reducing when you reach specific income or asset thresholds.
For singles, the pension will start reducing when your annual income is greater than $4,212, while couples can only earn $7,488 annually before their pension is affected.
Alternatively, your pension begins reducing when you have assets over $205,500 for singles, and $291,500 for couples.
Whichever test results in the lowest pension payable is the one that the government will apply.
In 2016, don’t become another statistic. If your property portfolio is still relatively small, start taking the necessary steps needed to build a larger property portfolio that will allow you to retire comfortably.