We sometimes speak to people in their 50s (some even older) who are beginning to wonder if they’ve left it too late to invest in property. As the prospect of their retirement years draws closer they begin to wish they’d invested sooner.

The good news is, according to independent property investment expert, Ken Raiss, it’s not too late. Encouragingly he said, “I certainly don’t believe anyone should ever think that generating income from real estate is out of their reach.”

That being said however, he does admit that if you’re a Baby Boomer, your options are more limited and your strategy will have to be different the later you start.

Investors in their 30s have around three decades before they will need to sell. Mr Raiss said people over 50 would need to invest in high growth properties that generally have a negative cash flow because they don’t have a lot of time up their sleeves to “see the wonders of compounding growth work its magic”.

Mr Raiss said this normally requires extra discipline in terms of the need to budget and make some sacrifices now, adding that the sacrifices made now should be viewed positively as they should lead to a more comfortable retirement.

The key questions to ask yourself are:

• When do I want to retire and how many years do I have left in the workforce?
• How much money do I need to sustain my lifestyle in retirement?
• What is my family situation and how will that impact my finances in retirement?

What about getting a loan?

Because most property loans are based on 30-year terms, Mr Raiss said a shorter loan term could mitigate your risk enough to satisfy a lender. Naturally this means you’ll be up for higher repayments, so it’s important to weigh up if this is within your means.

Mr Raiss said another option is to consider purchasing through a Self Managed Super Fund, which is becoming increasingly popular.

Encouragingly, Mr Raiss said, “The real estate market is a bottomless well of dwelling values, yields and growth potential – and there’s a multitude of strategy options for you to create a wealthy retirement, even at an advanced age.”

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