Australians over 55 have shown overwhelming interest in the property market and are eager to start investing the “dead” equity from their homes.

1. Silver-hair Investors Leverage Surplus from Empty Nests
Australians over 55 have shown overwhelming interest in the property market and are eager to start
investing the “dead” equity from their homes.
Gold Coast, QLD, May 08, 2014 - Australians over 55 have shown overwhelming interest in the
property market and are eager to start investing the “dead” equity from their homes.
A high number of retirees and soon-to-be retirees are amongst investors who made a mark on the
Australian property market in 2013, with activity at its highest levels in December since late 2003
in regards to a proportion of all housing finance commitments, according to RP data released
earlier this year.
Members Alliance CEO David Domingo says silver-hair investors are changing the face of the
investment market by re-entering with ambitions of returns that other ‘asset classes’ can’t
provide.
“The timeline of achievement has shortened with each generation; our parent’s generation had a
goal to pay off their homes before retirement, but now baby boomers are chasing full ownership
of a $1 million house whilst also wanting to refinance to leverage their equity long before
retirement,” says Mr Domingo.
“These days more people are realising they have ‘dead’ equity in their homes, which explains the
spike in activity from silver-hair investors.
“Well located and rentable homes are at the top of the over-55s investment wish list, but
purchasing means and goals can and do vary.”
These investors are using their age to their advantage, with some investing with funds from their
self-managed super fund.
The real estate industry has changed immensely since baby boomers bought their family homes,
which is why most experts agree older investors should buy with clear objectives to avoid financial
pitfalls, and as importantly seek reputable advice before buying.
Mr Domingo encourages retirees to think long-term with their investments by focusing on a clear
mandate.
“This includes suburbs close to railway stations with established and ongoing demand and
consistent population growth trends rather than properties promising super high yields today but
questionable long-term rental demand tomorrow,” says Mr Domingo.
“It’s a question that all investors should ask, but especially the over-55s: Am I buying for a
premium rental yield with higher risk or a long-term capital gain and a reasonable rental income?
“Reaching out for advice from finance and property experts can also help investors steer clear
from other common mistakes like retiree investors only buying homes they would live in and most
unfortunately ignoring what tenants expect.”

2. Tenant’s expectations have changed to renting property that is smaller in size, low maintenance
and near amenities and public transport.
Mr Domingo says in some cases, silver-hair investors are unaware of what a good investment
property looks like today.
“It’s been so long since they went out looking for their own homes and most critically they are
least versed in the proper mandate and criteria,” says Mr Domingo.
Members Alliance is a privately owned financial conglomerate, specialising in financial planning
and financial services, providing clients with proven strategies and techniques to ensure a
financially secure future.
For more information visit www.membersalliance.com.au For all media requirements contact
Bruce Nelson on 0423 403 449.
Contact:
Bruce Nelson
Zakazukha Marketing Communications
3 Eden Court
Nerang, Queensland 4220
+61 7 5596 6634
bruce@zakazukha.com
http://www.zakazukha.com
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