For generations, Australians have focused on paying down their debts to secure their retirements. However, Chris Gray, the host of Sky News’ Your Property Empire, encourages mortgage holders to forget conventional wisdom and take on investment property.
“As you get older, there is often a large amount of equity in the family home. Having it sit there doesn’t make you any richer,” Mr Gray explained to news.com.au. “However, if you get it working you could have twice as much, if not more, on retirement.”
“Most people spend a lifetime paying off their mortgage and when they finally do, the banks say, ‘Why not use that dead equity to invest elsewhere?’ Instead of waiting to pay off your first home, why not invest now?” he questioned.
While Mr Gray conceded that minimising personal debt is a good thing, he estimates buying one or two investment properties could net mortgage holders hundreds or thousands of dollars more than the few thousand dollars in interest they’d save focusing on their home’s mortgage.
Mr Gray advises potential investors to look for median-priced, blue-chip properties in blue-chip locations. He also says it’s essential for mortgage holders to assess their cash flow to determine whether they can realistically take on another mortgage.
If Chris Gray’s advice has inspired you, speak to us at Chase Edwards. We can provide a financial health check to help you determine whether it’s the right time to buy an investment property, and then help you find one to meet your needs.