Are we too old for this?

Never to late; as long as it’s really want you want + it meets the goal you want to achieve. Some issues you may face are;

1. Serviceability- instead of servicing a loan on 30 years…you may have to service it on a reduce term OR have a set realistic exit strategy
2. Time – Like most investment it required time for it to grow…so it depends if your after rental yield or capital growth etc..
3. Aggressiveness- Steve’s way of investing is what we call ” aggressive investor ” – keep on buying and unlocking unrealized equity ASAP so more properties can be bought in a short period of time- this may or may not suit your investing style + the bank may not fully support this style of investing given your age.

4. You may want to consider buying it under a SMSF???

The oldest client we have serviced a loan for was 71.

But either way- what ever you choose, i would highly suggest you speak to a financial planner; as there may be better means of investing given your retirement age. For example- a Superannuation Investment bond- 6-7% rental yield , low entry cost – and depending on your age and how you buy it- you pay NO CGT after 7 years.

Regards
Michael

Also one more thing you may want to discuses with your financial planner ( if she/he haven’t told you yet) is to change your Superannuation account to a Account based pension account. It means you start to draw on your Superannuation on a regular basis…but

1. You no longer pay the 15% tax
2. You no longer pay the 10% capital gain tax

And if you didn’t want to draw on the super- you could do a round robin and add the funds back into the Superannuation.

P.s Im not YET a registered financial planner- so please seek your own professional advice.

Regards
Michael

Hello CeeKay

Real Estate investment isn't a rocket science BUT the fundamental MUST be learned. And not to be bias at your age of 65, I would personally join any of the investment courses offered by the following investment guru which are mainly PCF advisor to accellerate your WEALTH creation rather than lose your life time saving.

Steve McNight 12 month course
Margaret Lomas
Helen Collier-Kogtevs

These guys are the expert in REI and through their programs they will coach and guide eventually you will achieve your goal.

Their courses would cost you between 2K to 4.5K for 12 months. You only need someone to help you get you started then you can take care from there…if you want you can continue to join their programs.

I've read all their books so needless to attend their courses because I already know what I wanted to achieve.

BTW, Steve bought 200+ properties in the US, so I followed him, I bought 3 myself.

Good luck.

Hi Ceekay,

65 hmmmmm – too old?

Average life expectancy in Australia is around 84 years (give or take a little). If you have an 'average' life expectancy then you can look forward to hanging around for another 19 years or so. What quality of life do you want during this time which equates to approximately one quarter of your total life span.

At your age borrowing money may be an issue and it may worthwhile seeing if family members would be interested in some form of trust structure.

Be looking at a cashflow investment at your age – without knowing the ins and outs of your situation it is a little hard to give further comment.

Certainly the costs of making a mistake are going to be high. Equally the cost of doing nothing are equally high.

Would your super amount make a Superfund investment worthwhile.

CeeKay,

Perhaps you could consider using what you already have to get what you want.

If you have the right type of property, you may be able to redevelop and subdivide that property so that you can down-size and invest at the same time.

For example, you could build a second dwelling on the land – suited to your needs – and then either sell or rent out the existing dwelling. This obviously won't work in all situations, but it may be worth considering.