Planning for retirement isn’t just about saving your dollars. It’s about thinking strategically and making smart decisions with your assets, including your property. Whether you’re a homeowner, an investor, or looking to enter the market, taking measured steps now can ensure a financially secure and comfortable future.
Here are our top tips to use property as part of your retirement strategy.
Clear your mortgage and reduce other debts
As a homeowner, one of your biggest financial goals is to pay off your mortgage in preparation for retirement. Jaime Pratt, Head of PM at VPM, has had many conversations with clients over the years about planning for their retirement. “Reducing or eliminating debt now means you’ll have fewer financial burdens when you stop working,” she says. “Prioritise high-interest debts first, then focus on chipping away at your mortgage to free up your income for other retirement goals.”
Leverage your property portfolio
Property is one of the most reliable long-term investments you can have, and as such, it can form a solid foundation for your retirement plan. If you already own investment properties, ensure they’re delivering strong rental returns and consider whether their location and value align with your long-term goals. If you’re new to property investment, diversifying your portfolio with real estate can provide consistent income and capital growth potential.
Consider downsizing opportunities
Many people find that downsizing is a practical and financially beneficial step as they approach retirement. “Selling a larger home and moving to a smaller, more manageable property can free up equity to fund your retirement,” suggests Jaime. “Look for properties that suit your lifestyle, offer low maintenance and and are located close to essential services.”
Maximise rental income
You want to make sure your rental properties are working hard for you. Regularly review rental rates to align with market conditions and consider upgrades or renovations that could increase the property’s value and attract quality tenants. “A well-maintained property can generate a steady income stream to support your retirement,” Jaime says.
Understand market trends
Keeping abreast of the local property market is essential for making well-informed, smart decisions. Jaime recommends understanding how factors like interest rates, housing demand, and regional growth trends may impact your property’s value or potential investments. “Partnering with an experienced real estate agent can also give you the insights you need to make the next step.”
Decide whether to sell or bequeath
More often than not, the family home is your largest asset. Deciding how to manage this asset, whether you plan to sell it to fund your retirement or pass it on as an inheritance, is an important consideration. Work with your family to discuss plans and ensure that your property decisions align with your broader retirement goals.
Explore dual-purpose and income opportunities
If you’re considering a new property purchase, you can look at options that can generate income while you live there. Jaime says that dual occupancies like standalone homes with granny flats provide flexibility for you to rent out part of the property now and potentially use it yourself later in retirement.
Whether you’re thinking of downsizing, investing, or making your current property work harder for you, now is the time to act. Our friendly team at VPM can provide insights into the value of your property portfolio, explore growth opportunities, and guide you toward the best decisions for your retirement goals. Reach out today for an obligation-free conversation about your future.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always consult with licensed professionals for advice tailored to your individual circumstances.
