Get Out Of The Rat Race And Retire Sooner

Credit: AAG

It really is the eternal dream of so many people. By the eternal dream of course we mean getting out of the rat race and retiring before everyone else, so that you can go off to the Caribbean and live the rest of your days with coconuts, sunshine and white sandy beaches and bag the best spots before everyone else. The sad fact is that most people won’t even be retired by the time they’re 65, and with government changes moving ahead, the retirement age may be placed higher and higher! Who knows where it might be by the time we all end up at retirement time? The point of this is that there is no set retirement bar for you, if you are savvy with your money and know how to make investments properly when you can. The best time to start investing is today and you need to do it as soon as possible in order to be self-sufficient in your retirement. A key role to remember is that you should always save at least 10% of your pay and put it into a savings account, though it’s even better if you can put it into some sort of investment!

A common question heard by financial advisors and financial planners is “What should I invest my money into for the best possible return?” The answer of course will vary depending on what stage you are at in your life. For example a couple who are closer to retirement and who only have some savings and their own home would probably be best off investing in property as quickly as possible. Why as quickly as possible? It’s wise to invest as soon as possible in property because every second you are not investing is capital growth that you’re missing out on.

If a younger couple or even a single person were to approach their financial planner and ask what the best way was to get ahead financially the answer might be quite similar: property. The exciting part about this is that when you’re young you can make a lot more risky financial investments because there is the chance to recoup your losses. The great part about property is that even if you are young investor or an older investor close to retirement, there is still the chance to make some great growth on houses if you buy at the right time and in the right area!

But how do you know what to buy and where to buy? The answer is actually quite simple but it does involve quite a bit of research to make sure that it will work.

Here is the strategy for ensuring that you buy a house that will incur good capital growth:

• Make sure that you target a property that is the worst house on the best street
• Make sure you research an area to ensure that there is sufficient population growth and a sufficient undersupply of housing to ensure that the house you buy will be in demand, both from renters and also from people wishing to buy in the future
• Make sure there is sufficient infrastructure in the area to make it attractive to renters
• Make sure you do research on the median house price and the median rental price in the area you wish to buy in
• Make sure the house you are buying is the right type for renters in that area. For example, if you buy a four-bedroom house and the area is populated by young professionals it may not be as attractive to renters.