What does the typical new property investor look like?
Here are some of the new-ish investors we’ve met lately:
- A 21-year-old recent graduate who has pooled the savings she made from part-time work while studying with the money her brother saved as a new bank employee to co-invest in a small unit. They’ve found great tenants and are managing it themselves. In the twelve months they’ve owned the property, the value has increased significantly. They plan to keep saving and buy three more units together within the next two years.
- A 34-year-old single mum of three who found herself having to start from scratch after a divorce. She had no assets, but a reasonable income. She used money lent to her from family to put a deposit on a townhouse in Brisbane. Once she had paid back her family, she put aside the money she had been using as repayments to build a deposit for another investment. In the meantime, the townhouse increased in value enough so she could afford to also put a deposit on a house for her and her children. She intends to keep investing in property so she has her children’s education and her retirement covered.
- A 40-year-old couple who would like to build a portfolio to provide retirement savings and to hedge against inflation. They want property investments to balance out their other stock and f-x investments.
- A 53-year-old tradesman who has built equity in his own home and in his business, but who is looking for independence from his current work. He’s aggressively building a portfolio in the hope that it will eventually replace his current income and provide a passive income in retirement.
- A 58-year-old couple who are looking at retiring in seven years. They are planning on moving into the house they currently use as their holiday home, and they’d like to sell their current family home. They plan on using some of the proceeds to supplement their superannuation plan. The rest they’d like to invest to provide some income.
We’ve learned that there’s no such thing as a ‘typical’ property investor!