Once all the children have left the home, many empty nesters start to look for change in their lives and ways to save more for their future.
With only a few years left before retirement, people should look beyond their superannuation savings and at additional ways to invest. Superannuation may be a good basic source of income after retirement, but it can often be too little to sustain a comfortable lifestyle throughout a long retirement.
Empty nesters often have more money available once their children leave the home and those who own a large property mostly have good equity – which puts them in the ideal position to invest in an additional property. Traditionally many would consider downsizing and moving into a smaller home, but this isn’t always the best way to ensure a secure financial future. Alternatives, such as investment properties and developments are widely regarded as fruitful investments and are becoming increasingly popular with empty-nesters due to the flexibility and variety of living options that it offers. The choices that investment properties offer to empty nesters include:
- Building an additional dwelling on the existing block – those who own a home on a larger block of land have the option to build an additional dwelling, such as a house-behind-house development, on their property. This option gives empty nesters the freedom to remain in their current home and generate an income from the new home, or move into the smaller property without having to move to another area.
- Subdivide – many people who live close to the city live in older homes that require regular maintenance and may need urgent renovation to modernise it and ensure its value in the future. The simple, and most often cost-effective, solution for empty nesters is to demolish the old home and rebuild several smaller homes on the same property. The owners will have many options once the subdivision is complete; they can live in one of the dwellings and rent or sell the rest, or move into a new home in a different area but receive a rental income from the units, or sell all of them for a profit. This is often the ideal solution for empty-nesters who want to downsize and move into a smaller property in a new area, but are looking for ways to expand their property portfolio.
- An investment property for now, a downsize for the future – empty nesters that choose to keep on living in their family homes, should not overlook the option of investing in a smaller property too. An additional property can be rented out for an extra income, but it also gives them the option to move into the unit whenever they decide that a smaller home may suit their lifestyle better.
Investing in property may seem like a risky and big task, but with the guidance of an expert property developer it shouldn’t be. Ross North Developments has over 40 years of experience in property development in Perth and our team of professionals can guide you through each step of the property development journey. We can assist you in reaching your block’s full potential or in helping you find an ideal block to develop – and whether it is a duplex, triplex, house behind house, or multi unit development, each property will be developed with quality and excellence. To speak to our property development experts call 08 9431 8118 today.