Cautious nest egg plans
Question from Tracey updated on 2nd July 2014:
Hi there, my husband and I have been living in Australia for four years and our combined income is AUD $220,000. We do not own a property here or in New Zealand. We have managed to save AUD $230,000 which we have in a reward saver account in Australia and we earn monthly bonus interest on it. We want to retire in New Zealand but this is a long way off at the moment, I am 40 and my husband is 43. Instead of buying a property over here, we would prefer to buy an investment property or properties in New Zealand and leave the rental income received over there until we retire. This is our plan so that we can have a nice little nest egg in our older years. How does this plan sound to you? We are very green to property investment. We’ve worked so hard and sacrificed a lot to save this amount of money, we are a little afraid of making mistakes in this field.Thanks in advance, Tracey.
Our expert Kris Pedersen responded:
Hi Tracey, you are in a very good position to invest. I would recommend that you ascertain what asset base you believe you need at retirement to provide you the lifestyle and cashflow that you require. Investment property can definitely do this for you but you need to start with an actual goal on what the specifics around this are and then put a bit of a plan in place in regards to the other parts of what will help you get there. Think about what team members you will need, for example property managers and an accountant who can advise you on the tax situation with you purchasing here and being domiciled in Australia. Regards, Kris Pedersen
Kris Pedersen of Kris Pedersen Mortgages is a commentator on property and finance. His team sources top finance strategies. www.krispedersen.co.nz