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Thursday, January 28, 2021

Important to plan early for your retirement

There is common thinking that many people leave retirement decisions, such as where to live when downsizing or seeking a new beginning, until too late. They leave it until their opportunity to fully enjoy retirement and community living and community spirit is diminished. People need to plan early when the best financial and personal decisions can be made.

With respect to planning for a retirement home, the newly released Invest+Retire™ package at Summerfield seems to tick all the boxes. Summerfield is a thriving over-55s affordable luxury estate at the vibrant, community-spirited town of Braidwood, between Canberra and Batemans Bay. The new package has really hit on a formula where strategic financial and personal planning for future retirement as to where to live can be worked through in a strategic and proactive manner.

So what is Invest+Retire™ all about. It really is very simple. Identify where you want to live and a property in an over-55s freehold estate and purchase as an investment property. Check value and amenity. Look at rentability and whether there are any rental underwrites or guarantees. Take advantage of tax deprecation benefits in your own personal circumstances or in your Self Managed Super Fund (SMSF).

Let us look briefly in some more depth at the Summerfield Invest+Retire™ Matrix.  These 3-bed 2-bath 2-car villas at Summerfield in the thriving town of Braidwood offers superb value, being half the price of Sydney and far better value being freehold than in Canberra.  Of course, freehold is an important element of the Invest+Retire™ matrix as it allows borrowing effectively. With many of the leasehold villages in retirement complexes there is no security value on which to borrow. Proper borrowing and financial leverage is an important part of wealth creation. Further, when you purchase at Summerfield, you are also purchasing a stake in the excellent community facilities. This makes for an ideal future capital growth equation as well.

With the current interest rates at an all-time low there is no better time to set up your financial future, while you are working, for your future over 55s work slowdown or retirement. Fantastic lock-in rates for five years can now be achieved which will set you up well for the future. Importantly, you need to consider the impediments imposed in the banking world for those who are over 65 to borrow, or who only have a relatively low income. So, if at all possible, it’s important to set all this up while you are working with a reasonable income.

Flexibility to sell your home when you want to optimise value is important. For many, their home is a major asset and, accordingly, when selling such as to downsize or move to an over-55s community, it is important that it can be done at the most opportune time and not in a rush. Invest+Retire™ allows that as you have identified and purchased your retirement home and it is earning an income.

A real advantage of freehold such as at Summerfield is that you can sell your property at any time and keep all the capital growth. There are no exit fees or lock in.

A key facet of Summerfield is that a rental underwrite, which establishes a base rent plus you keep whatever excess is received, or a rental guarantee is available. This provides you with total peace of mind that your investment property is earning at all times. Summerfield is constantly looking for approved people to rent and establishing a database of all prospects. There are many over 55s who would love to rent at Summerfield for a short or long period of time and enjoy the clean, crisp, country air and the wonderful community spirit. All in all, the new Summerfield Invest+Retire™ package looks like a real winner.

Call Summerfield on 1300 73 79 70 for a confidential discussion on how this innovative new package can benefit you.

W: https://summerfield.com.au/

This editorial was created in partnership with Summerfield. For more information on sponsored partnerships, click here.