Short advisory video by Aaron Whybrow addressing whether people aged ~55–65 can start investing. Uses client examples where buyers deploy cash into modestly-leveraged investment properties (example: $400,000 property with $225,000 debt) that generate rental income to cover mortgage and costs; recommends principal-and-interest loans, offset accounts, and potentially buying multiple properties over a ~15-year horizon to build retirement income and choice.
Can you start investing when you are 55 to 65 years old? Hey, it's Aaron from Diagnostics and Finance. I've got a couple of clients at the moment that are starting their investment journey at this time. They could be self employed or employed. And what the big thing is for them is that they've got a lot of cash capital sitting in their bank account that they want to deploy and they own their own occupied property or they are well on their way to taking care of that mortgage and now they're looking at how they can double down on getting income going into retirement. So one of the things that these clients have done, they're very open and have come to me to buy an investment property and I'm able to do the lending for it. So the lending may not be that big. We might be buying a $400,000 home and we're only putting a $225,000 debt on it, but they're able to get the yield off the property or the rental income of the property to help support paying it all down. And since they didn't leverage that high, their loan is so low that the rent should take care of not only the mortgage repayments, but a lot of the costs as well as they go forward. Then we also look to set these loans up from principal and interest from the get go to access the lower interest rates. And because they don't have any owner occupied debt or it's totally under control, they're able to dump a lot more of their savings and surplus money into it as well. And not only that, being able to do that at that period of time allows us to set up with an offset account, set up with how we can reduce the expenditure on interest and then look to get the next property as well. So depending on what their income goals are, according to their financial advice and those things, they may want to get not just the one property, but the two, the three, the four. And if they've got about a 15 year horizon or they are willing to keep paying down debt with their rental income as they go forward, they would have the choice and options to not only own their places, pay out the debt, sell a property, but they have a lot more choice when they start going into retirement. So if you're between the ages of 50 and 60 and you want to have a look at where you're at with whether you can still get into the market or invest, reach out today, SA.
