That’s a good question – and one I hope as many people as possible answer for themselves ASAP.
Will this decade be the decade you become financially independent?
What better way to catapult yourself there than through the best performing investment asset out there: Property.
When we meet people for the first time, we take them through a guided discovery. One of the things we uncover is how much they think they’d need to live on in retirement. We ask clients: If you had no dependents to pay for and no debt, how much do you think you’d require to live the lifestyle you’re accustomed to? The most common answer we get is $50K per year.
Now let me tell you about a little frustration of mine: Procrastination! Sometimes I suffer from this terrible debilitating disease! 😉 However, when it’s a client suffering, it breaks my heart – Particularly when it comes to investment property in Auckland.
This one is tough for me: “We’ll just wait a couple of months while XYZ happens – once that’s taken care of, we’ll make a move into investment property”.
I’m philosophical about this by the way – I actually genuinely believe the client has to be ready and that it’s 100% their decision as to what they want to do……But….here’s some food for thought when it comes to procrastinating on buying investment property in the current Auckland market:
In 2013, house prices in Auckland rose about $10K per month. So, you could argue on the one hand that you’re losing out on $10K per month. But – you’re not! You’re losing out on much much more than that! If you take $10K and compound that figure for 20 years at 9.2% per annum (that’s the average per year that property in NZ has performed at over the last 40 years) – You don’t have $10K anymore – You have $58K!
So – If your retirement is in 20 years time, you’re missing out on $58K per month for every month you wait to enter this market! That’s a whole year’s income in retirement per month you’re missing out on!
So…..I ask again…
When will NOW be the right time for YOU!?