FAQ's and simple answers
We are in our ‘fifties’ – is it too late to invest in property?
NO! Regardless of your age, you can start planning for your future, so that you have a financial cushion when you face life's 'ups and downs'.
But, you need to seek specific advice about your individual financial situation.
For most people coming up to retirement age, the greatest fear is that they will live longer than their money. Fear of poverty is the number one fear from which the majority of people suffer. Sadly, so few take any action to prevent poverty or are blissfully ignorant of what the future holds for them.
There are five main reasons why most of the population do nothing about tackling their fear of poverty and they are:
• Fear of the unknown
• Inability to make a decision
• Worry about what can go wrong
• Analysis paralysis
• Lack of knowledge
People don't plan to fail, they fail to plan!
Most people wish for wealth, but few have a definite plan and the burning desire to pave the road to wealth.
We are confident that by joining us in the next stages of your learning and planning program, you will increase your knowledge and ability to be among the very few who successfully plan the road to independent wealth.... and live well in retirement.
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How much money do I need to retire?
Over the past ten years the Federal Government has made it harder to qualify for the aged pension and has indicated it will make it even tougher in the future.
The introduction of the assets test, deeming on savings accounts and changes to the treatment of shares and unit trusts have all ensured that fewer retirees will get the pension. 
Retirement used to be a time to enjoy. Today, for many people, it's a time to fear. Australia's retirees are rapidly becoming the 'nation's poor', squeezed by higher costs of living, thus starving them of funds to pay bills.
For many of today's retirees, poor retirement planning has cost them their lifestyle. With increasing longevity, there are many more years where you need to make your money last during your retirement. So, in order to be able to retire well, you need to start planning early and building a separate retirement nest egg on top of superannuation.
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Why invest in property, instead of shares? 
In plain terms, negative gearing allows people to borrow money to purchase an income producing property, and to claim a tax deduction for many expenses they incur running that income producing property ... including loan interest.
Your tax rebates, along with your rental income are used to pay off your loan, with a small amount coming out of your own pocket.
The end result ... down the track, the tax man and your tenants will have paid most of your running costs for you and your property will have more than doubled in value, so you can now sell it and earn a tidy profit, or use this system to accumulate multiple properties to use the rental income as part of your retirement portfolio.
In the early stages of investing in a negatively geared property, your costs like interest and so forth, are higher than the rental income you receive, so your property is negatively geared.
Apart from negative gearing, there are two other types of gearing situations which offer you even more benefits.
Firstly, there’s neutral gearing which happens with the costs incurred “running” your income producing property match the income that the property generates. And then there’s positive gearing, where the income from your property actually exceeds the costs of running the property.
Negative gearing is the first step for most investors because, through the HUGE tax deductions offered, it is by far the most affordable, so it enables you to purchase multiple properties for a low up-front and ongoing cost.
Once your loan has reduced, and your property has increased in value, you’ll start to experience neutral gearing. This process is greatly accelerated with Mortgage Reduction.
Then down the track your portfolio will be positively geared which is the ultimate goal for many investors, enabling you to retire on a very comfortable income ... much higher than you’d expect through superannuation.
What sort of deposit do I need to purchase an investment property? 
As you know, when you bought your first home, you had to come up with a cash deposit of up to 20% of the purchase price, plus costs, and also be able to afford the monthly mortgage repayments of many hundreds of dollars. If this was the same for buying an investment property, nobody would ever be able to afford it. Thankfully, in most cases, its not!
If you have owned your own home for a few years, you will have built up quite a bit of equity in your property. You will have paid off some of the loan, and there’s a good chance that your property has increased in value too.
Instead of finding a cash deposit, one option is for the bank to allow you to use equity built up in your home as security on your investment property.
And when you buy a property there are costs like establishment fees, solicitor’s fees, stamp duty and the like, that together can add up to many thousands of dollars.
Instead of trying to find cash to pay these fees, the Bank may allow you to add these onto the loan account. So you don’t need thousand upon thousands of dollars in savings to get started. In fact, you may only need the equity in your home ... and the right advice.
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Why do some property investments work better than others for their owners .... and what can I do to make sure my property investments perform well?
Essentially, property investment performance means minimising your ‘out of pocket’ expenses and maximising your potential capital growth. Some of the reasons property investments fail to perform as expected can include:
• The loan taken out was structured wrongly;
• The loan was taken out in the wrong name;
• “High maintenance” houses were purchased;
• Investors missed out on claiming the highest possible
amount in non-cash tax deductions;
• Low rents and high vacancy periods;
• Paying too much for the property in the first place;
• Low capital growth potential.
These mistakes can easily be avoided. Before investing, contact us for free advice on which price range, which area and type of property are most suitable for your situation.
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What happens if we can’t find a tenant for our investment property?
At the moment, there is an extreme shortage of rental properties in Queensland. It's basic knowledge that your property needs to be in a good location where there is a high demand for rental properties, as well as being close to transport, shops, schools and employment.
But, there's much, much more you need to know in order to be successful in property investment.
There's no such thing as 'one size fits all' in property. By dealing with a property specialist, you benefit from their current knowledge of the real estate market and their professional experience in a range of properties for investors and first home buyers.
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What if I become unemployed or too sick to work?
One option is to set up your loan with a three month buffer to give you breathing space in case of unemployment. But, you may need more than this to ensure the safety of your investment. That's why it's essential to meet with a finance expert to discuss all f the possibilities in detail, prior to purchasing an investment property or your first home.
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What about rising interest rates?
When taking out a loan from a Bank or Building society you have the option of staying on at a lower variable rate of interest or paying a slightly higher interest rate and having it fixed for up to five years.
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What if the rental property is damaged?
All the major insurance companies offer comprehensive policies which cover most forms of damage [e.g. damage from a war is not covered.] The cost of such a policy is minimal and tax deductible. For a small cost you can even extend the policy to cover loss of rent.
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Who will manage my rental property?
The professional team we work with include property managers who are highly trained and who form the backbone of the real estate industry. In the case of SSIC clients, we will appoint a property manager who is an expert in the location where your property is situated.
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Click here to contact us for an obligation-free consultation and get started on your way to financial security.
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