Which Investment Property, a site dedicated to the latest property data and investor stories in Australia, focused the spotlight on the story of single mother and how she built a multi-property portfolio against all odds. The article is about Amy Mylius’ mum who, despite being a single parent most of her life, managed to make an investment in property—even in her advanced years. Due to a miscalculation with the superannuation and sales proceeds from their family home, Amy and her mother realised that the latter did not have enough funds for her retirement.
You might be a single parent interested in property as well. Here’s what you can do from Amy’s mother’s point-of-view:
Know the Market
Property experts Vystal Group believes investment property in Australia is a highly competitive market that requires analysis, particularly with buyer demands and estate trends. Venturing into properties without any knowledge may compromise your money and objectives. It pays to familiarise yourself with investing resources; fortunately, online resources, like the Australian Securities & Investments Commission, offer valuable guidance. You can also consult with financial experts or property professionals. Whatever method you choose, focus on gathering information on the following: costs and return, locations and types of property.
In the case of Amy’s mother, she learned more about rents, tax benefits and available properties before going into the market. Their search led to them to a four-bedroom brick house in Wendouree, which met all of their specifications. Her mother also spent an additional $15,000 from her equity loan to refurbish the home.
What’s Your Goal?
For Amy’s mother, the goal was simple: earn enough to support her retirement without troubling her daughter. Determining short-term and long-term goals offers a better insight on your next step. When you know what you want, you’ll have a better idea of your next step in investment. For example, are you sending your child to school soon? Calculate the necessary rental income from the property to determine the amount you’ll need for expected expense.
In the end, the single mother increased her portfolio from $550,000 to $1.13 million. With patience, perseverance and help from her daughter, she now has necessary funding for retirement.