3 tips for retirement planning with property investment

Published on December 4th, 2020
  Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
Our authors

Fact checked

At Savvy, we are committed to providing accurate information. Our content undergoes a rigorous process of fact-checking before it is published. Learn more about our editorial policy.

At Savvy, our mission is to empower you to make informed financial choices. While we maintain stringent editorial standards, this article may include mentions of products offered by our partners. Here’s how we generate income.

When planning for retirement, a lot of people opt for property investment, as it provides a wide range of attractive advantages. Nonetheless, before making your decision, you need to do your research and, only afterwards, make an informed decision. Not every property is suitable for investment. Thus, consider the following tips that will come in handy in helping you to select the best kind of property investment to assist in retirement planning.

The right type of property

Before you make your decision, the best thing for you to do is to opt for the assistance of experienced professionals, this assistance will usually come from a finance broker, financial planner and an accountant. This is a very important decision, as it can ensure your future financial security for years to come. Thus, given the fact that we are talking about significant amounts of money, asking for the opinion of a professional is a must.

You certainly have a wide range of choices when it comes to property investment, whether you choose a new or old property, house or unit, building or land only, so on and so forth. Every option itself encompasses its set of advantages and disadvantages. To put it more clearly, a new property might embody higher chances of depreciation, while, on the other hand, an old property is certainly cheaper for you to buy and potential gives your the opportunity to add serious value through a development. Also, a unit may attract a larger amount of rentals while a house certainly implies a more significant capital growth potential in the long run.

As you have a lot of options at your disposal, it might be quite confusing to make your decision. However, don’t let this overwhelm you, first and foremost, determine your goals and appetite for risk. Once this has been established you can begin to look for the asset class that will allow you to reach your end goal.

Are there any risks involved?

As with any investment, there are always risks associated. After all, an investment is a gamble, ultimately, so property investments do come with risks. However, the positive news is that these risks can be minimised if you take the time to look into the interested assest class and you do your research. Risk factors can be timing, age, the type of property, macro economic conditions etc. 

For example, you have to pay attention to the housing market – it is cyclical, so in some periods it will be rising, but other times it will be falling, ideally you dont want to invest in a declining property market. Also, you need to take into account the sheer expense related to taxes, upkeep and maintenance. Underestimating them can lead to a risky investment if you fail to keep up with them. As a general rule, you should be realistic concerning your anticipated profit, so that you don’t get your hopes up.


The key to positive retirement in Australia is having enough income to see you through to the very end without any assistance from the governement. Property investment can have a positive influence on your retirement portfolio however you shouldn’t just focus your attention only on this aspect. Planning your retirement means diversifying. Thus, our piece of advice is to consider discussing with your financial adviser about ways in which you can expand your retirement plans, to work best for your advantage and well-being.

Did you find this page helpful?

Thanks for your feedback!

This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.

The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.

Approval for home loans is always subject to our lender’s terms, conditions and qualification criteria. Lenders will undertake a credit check in line with responsible lending obligations to help determine whether you’re in a position to take on the loan you’re applying for.

The interest rate, comparison rate, fees and monthly repayments will depend on factors specific to your profile, such as your financial situation, as well as others, such as the loan’s size and your chosen repayment term. Costs such as broker fees, redraw fees or early repayment fees, and cost savings such as fee waivers, aren’t included in the comparison rate but may influence the cost of the loan. Different terms, fees or other loan amounts may result in a different comparison rate.

In this article

Share this article

Share on facebook
Share on twitter
Share on linkedin
Share on email
Share on pinterest

Looking for a home loan?

Compare Australia’s reputed home loan lenders with us and save.

* Terms and conditions and lending criteria apply.

Smart money saving tips

Subscribe to our newsletter.

By subscribing you agree to our privacy policy

Related articles

Easily compare home loan options today

We compare home loan options for you so you can be assured you’re seeing the most competitive interest rates available in Australia.

We'd love to chat, how can we help?

By clicking "Submit", you agree to be contacted by a Savvy broker and to receive communications from Savvy which you can unsubscribe from at any time. Read our Privacy Policy.