Date post: | 29-May-2015 |
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Real Estate |
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Copyright KCL 2009
Welcome
David Halling
Copyright KCL 2009
Housekeeping
• Nothing to sell – just information, no pressure• Please hold questions to the end• We are not financial planners
– Please seek your own independent advice• Data used is considered reliable but is only for
illustration or assistance with explanations
Copyright KCL 2009
Some facts• Retirees are fastest growing population
– 5,400,000 over 55 today– 7,800,000 over 55 by 2026
• We spend average 15 years in retirement• Expectancy is Males 79 / Females 84
– Males 84 / Females 87 by 2051• Only 1 in 12 people over 70 live in retirement village
Copyright KCL 2009
ChoicePreparing for the future whilst still in controlLifestyleDownsizingFriendship with similar people of similar
interestsMoving closer to family
Why do we consider moving?
Less choice Maintenance and costs of running house
Health Security Concern for spouse Isolation
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Aussie culture
Lack of available information
Denial
Costs prohibitive******
Family influence******
Why don’t we move?
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Reduction in wealth2% 7%40%
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Solution?
• Flexible range of financial supports
•Most common is assistance with the gap between available funds and entry cost
•Retireassist can act as a ‘partner’
•Can convert gap into equity
Copyright KCL 2009
Example• Couple 70 and 71yo with
– home $370,000
– Cash $ 10,000– Super/shares $ 10,000
• Buy retirement lifestyle property for $400,000
• Retireassist partners with $60,000 (15% equity)
• Cash has increased by 300%– more lifestyle options– Capital growth now on
higher value property
Home
Cash
Shares
Home
Cash
Shares
Before Retireassist
After Retireassist
Copyright KCL 2009
Later?•Property is offered for resale in 10 years time at market value of $700,000
•Owner takes original 85% equity
back ($340,000) PLUS 85% of capital growth ($255,000)
•This equals $595,000 in total
•Retireassist takes original 15% equity back ($60,000) PLUS 15% of capital growth ($45,000)
Copyright KCL 2009
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Som'ton Pk Glenelg Pasadena Ashford
Start
5 years on
Its largely about location too!Retirement property is an investment – a big one!
Must perform like any other in your portfolio
‘Numbers’ have to add up
* Source RPData June 2009
Copyright KCL 2009
Other supports
• Deferral of maintenance fees and other on-going costs until resale with no direct cost or fees
• This could include the retireassist plus care services available at Baywaters
Copyright KCL 2009
Copyright KCL 2009
Questions?1300 796 311