Investing in Yarra Valley Property for Retirement

There is always a lot of talk about superannuation and the effect that interest rates and economic changes are having on super balances. Australians are starting to look towards real estate investment as a more secure form of long term superannuation investment. We are also seeing quite a bit of this in the Yarra Valley at the moment.

Property investment for retirement isnt necessarily an easy process, but it can be worth it if you do you homework and have good financial advice behind you. Firstly you need to have a self manged super fund set up and use it to take advantage of entitlements that come with investing through superannuation.

Buying an investment property through self managed super fund instead of outside of it can have many tax benefits including;

  • Lower tax rate on rental income earned by the property.
  • Possibly more suitable for your retirement goals in comparison to shares or other investment opportunities.
  • Lower capital gains tax if you sell the investment property after 12 months.
  • If drawing a pension for your self managed supr fund, capital gains tax can be tax-free.

Although the process is more complicated than buying an investment property straight up the benefits later in life can be well and truly worth it.

There are plently of places throughout Australia that are investment hot spots – look for places with booming infrastructure and development such as in and around mining towns and low rental vacancy rates. Talk to your local Professionals Real Estate Agent about investment opportunities available in your area.

The Yarra Valley is certainly a good place to look, so give the Yarra Valley Real Estate Professionals a call on 5967 1800 to discuss options.

Make sure you speak to your financial advisor about your plans and options before proceeding with any real estate transaction, and ensure you follow compliance rules and obligations.