Author: Tom Haigh
As a nation of proud property owners, property is much more to Australians than just bricks and mortar. Property is a culture, an obsession even, and it has served as the foundation of wealth for many generations.
Unfortunately for many Australians, our passion for property and the emotional attachment that goes along with it, means we often fail to see both the issues and the opportunities that are right in front of us.
As a form of an investment that represents the majority of individual wealth for a large proportion of Australia’s population (as at 2016, 65.5 per cent of Australians were home owners*), it often fails to serve the genuine lifestyle and retirement objectives of those who own it.
Property ownership can often result in significant mortgage repayments, high annual holding costs, labour intensive maintenance/upkeep, and in the case of many investment properties – income that does not cover expenses. These are all things that impact our ability to live how we would truly like to. Due to our emotional attachment, we don’t often think of property as being an anchor, a drain, or a hindrance on our lifestyle.
The good news is there are solutions available. There are proven strategies we can utilise to transform your property from a limitation on your lifestyle into an asset that provides for your ideal lifestyle. Whilst the steps are genuinely simple, the hardest thing to do is challenging yourself to act.
Whether the focus is on private, investment or commercial property, the first thing we need to do is assess how your property (or properties) is currently contributing to the achievement of your short and long-term objectives. We then need to look for opportunities to lower or eliminate debt commitments, reduce holding costs, generate or increase recurring income, or potentially generate profit or release equity through the development and/or sale of part or all of your property.
If we really challenge our thinking, there is not a property in Australia that couldn’t better serve the interests of its owner. We only need to look at the situation from a new perspective in order to see the opportunities that are right in front of us.
So, if you own property and are currently accumulating wealth for future retirement, or are transitioning into retirement and would like to lead a better lifestyle than your income and expenses currently allow you to – it’s time to take action. Challenge yourself to avoid the opportunity costs that come with not doing what you know you should do.
Our informative Blueprint will give you an understanding of how to go about identifying and realising the true potential of your property assets.
In our next blog we’re going to take you through seven strategies that you can utilise in order to fund your lifestyle through property you own.
If you need help identifying and capitalising on opportunities to improve your future, get in touch with the experienced, independent property advisers at Groundswell Property Consultants who can show you how. Your lifestyle depends on it.
* Source: ABS (2016)
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