After leaving the workplace, retirees often worry about their investments, particularly if these involve living off quarterly dividend payments from managed funds.
In a poorly performing fund, the retiree may have numerous periods where dividend payments are insufficient to ensure the maintenance of a lifestyle to which they are accustomed.
However, with a balanced portfolio of at least a couple of good investment properties, this problem can be effectively avoided by having regular monthly rental returns coming in.
Rather than spending days worrying about market fluctuations, the retiree can actually remain very active by keeping in contact with tenants and attending to any routine or special maintenance as he or she sees fit.
It's certainly not a requirement to do this (and the rent should be well and truly sufficient to cover hiring a property manager) but it's nice to have the option of getting out and about. Depending on the nature of the work performed, this may also be quiet physically and mentally beneficial.
Please remember that should you manage your own property, the same rules apply as if you were letting a real estate look after it. This book of rules can be picked up from any real estate office of the department of Fair Trading.
Remember - when shares shudder bricks boom! Bricks and mortar is still the best investment you will ever make and by far the safest one over the long term, especially getting into a property with healthy capital growth over time.
If you're looking to purchase your first investment property or add to your portfolio, contact our team today for independent advice on what you should be looking for on 02 9960 1066 or enquiries@pkproperty.com.au.