This month is filled with thoughts and images of love as Valentine’s Day approaches! What’s not often talked about is how you can express love by securing your family’s financial future.
What is Your Love Language?
Each person has a unique way of showing our care and appreciation for our loved ones. Some people express their love through actions, others in words. Showing your family your love for them is a priority. Parents spend their lives engaging in acts of love and providing a safe and loving home for their children, and eventually their grandchildren. Parents are providers of both love and security.
Is leaving a legacy for your children and grandchildren important to you?
Creating financial independence for your retirement, and leaving behind a valuable property portfolio when you pass on, are wonderful gifts and expressions of love! If you are planning your retirement financial strategy or if you are looking for a pathway to create generational wealth, buy-to-let properties are solid investments. They secure not only your financial security during retirement but the financial security of your family who inherit your property portfolio. In this way, your family will reap the rewards of a stable monthly income, property investments that appreciate, and financial freedom for many years ahead.
The Efficacy of Buy-to-let Properties as a Legacy of Love
Property investment is considered a stable investment, one that offers both immediate and long-term returns. Other investment options can fluctuate with market movements, however, buy-to-let properties provide a tangible asset, offer you a passive income, and are protected from inflation fluctuations in the market. If you purchase the best buy-to-let properties, they will benefit you financially in your retirement and your family, once passed on via inheritance. We can show you how, even on a fairly modest income, it is possible to build a property portfolio to provide monthly income during your retirement and then how to leave this as a legacy to your loved ones, tax-free.
How to Build a Buy-to-Let Property Portfolio
A wonderful way to leave a financial legacy is to learn the skills needed to know how to build a buy-to-let property portfolio.
Here are some handy property investment tips to begin your property portfolio road to success:
1. Figure out your investment goals in the short and long term: are your goals tied to generating immediate rental income or a long-term goal of capital appreciation? You may aim for both of these goals.
2. Do your homework on the property market: keep an eye out for the best buy-to-let properties situated in high-demand rental locations to maximise your ROI (or make use of our knowledge as we hunt for these high, stable-return properties for you!)
3. Securing financing – explore home loan options, utilising your existing equity or income to leverage OPM or Other People’s Money. You might be surprised how keen banks are to loan money for buy-to-let investment properties.
4. Manage your portfolio effectively or find a rental manager to help you: whether you choose to manage your own rental properties or use property management services, the maintenance and smooth running of your properties is what determines long-term property portfolio success. IGrow Rental Management offers a full suite of tenant vetting and managing, as well as property management services.
5. Have a property portfolio growth plan in place – reinvest your profits or leverage your equity in your first property and purchase new properties to expand your property empire.
6. Get help with tax management: If you’d like to enjoy your property portfolio’s earnings in retirement and pass on your legacy tax-free, you will need help setting up the right structures, such as a trust or company, so that you can deduct your property management expenses and draw an income without attracting Capital Gains Tax or Inheritance Taxes.
Buy-to-Let Retirement Property: The Smart Choice for Retirees!
Nowadays, many retirees are looking into a buy-to-let retirement property portfolio to safeguard their financial future. Rather than rely only on traditional retirement plans, annuities or savings, property investments provide reliable rental income that will take care of your day-to-day expenses. Traditional retirement plans can unfortunately run dry during your retirement years, while rental income appreciates as your tenant’s rent increases each year.
Traditional retirement plans are very sticky too as you can’t access your funds until retirement age unless you face an emergency. This is part of new regulations regarding property and retirement plans known as the “Two Pot System.” Read more about the Two-Pot system regulations in South Africa in our blog post: Why Retirement Property Investment is the Best Strategy for Retirement Planning
Property Investing Tips Suited to Retirees
If you’re planning for your retirement and you want to provide for yourself and your family that will outlive you, with a stable financial future, there are certain property investment tips to follow.
The property investment tips you’ll need are as follows:
1. Seek out low-risk property investments: choose buy-to-let properties that are situated in stable rental markets and will ensure you get a reliable income.
2. Don’t buy run-down properties: buy properties that require low maintenance to avoid big repair costs, and get a rental and property management service to help you manage tenants and property maintenance efficiently and effectively.
3. Consider your tax obligations: make sure you are aware of Capital Gains Tax and other tax laws that will affect your purchases if you choose to sell at any point, and get expert advice on how best to manage your taxes.
4. Choose a property based on rental yield potential: choose properties in areas in high demand by tenants. Consider seeking expert advice on this as it has such a big impact.
5. Have a long-term investment plan: property investment portfolios take time to acquire and meet your retirement plan goals.
Leaving a Legacy of Love- Your Property Investment Ensures a Safe Future for You and Your Family
Expanding your property portfolio is not just a financial move, it’s an expression of your love language that makes sure your family is taken care of financially. By structuring your buy-to-let property portfolio well, your children and grandchildren will inherit property assets that produce wealth for generations.
Instead of having your family stretch their income to take care of you during old age, and then leaving your family with your financial debt obligations, imagine enjoying an independent retirement and then lovingly leaving them with a selection of properties, giving them security and wealth long into the future. They’ll also have the opportunity to grow the legacy you started in expanding your portfolio, building on this amazing gift of intergenerational wealth. It is possible, with the correct advice, even for those with relatively modest means.
Buy-to-let retirement property ensures you stay financially independent through your later life and means you can set your family up for success in the future. The income received from your inherited property portfolio, supports your close family members, and can help pay for education and other financial needs.
How Can I Retire in a Financially Independent Position?
Being financially independent in your retirement highlights the need to have enough assets to provide for your living expenses without looking for additional financial support from elsewhere or others.
Follow these steps to help you retire and remain financially independent:
1. Invest in buy-to-let properties or income-generating assets: choose properties with high rental yields.
2. Account for your debt: try to pay off high-interest debts you owe, before you retire, so you aren’t put under unnecessary financial pressure when you are no longer earning a salary.
3. Create more than one income stream: diversify your assets if you have a traditional retirement plan in place and you can spend 25% of your investments on property.
4. Make plans for long-term inheritance strategies: create a clear Will that details the transfer of your property assets and have it seen over by a property lawyer.
5. Consider putting your property assets in a Trust: If your properties remain independent, consider the many benefits of putting them in a trust- safeguarding them from risk.
Property investment is a game-changer in helping you stay financially independent after retirement.
IGrow Wealth Planning Helps You with Your Property Portfolio Initiation or Structuring
At IGrow Wealth Investments, we are aware that planning for your retirement and incorporating property investment within this plan, requires expert advice, guidance and knowledge. Our IGrow Wealth Planners and Risk Advisers are adept at helping retirees create sustainable property portfolios providing long-term passive income streams. Our portfolio planners tailor-make a strategy for you that aligns with any goals you set for retirement, making sure you are secure financially and that you can indeed leave a lasting legacy for your loved ones.
Our project development specialists choose the best buy-to-let properties situated in prime rental areas, with excellent tenant demand and high levels of interest from major banks. With their expertise at hand, you will have access to exclusive property investment options, and we’ll guide you to make decisions that maximise your return on investment and minimize any risks. If you are a novice investor purchasing your very first buy-to-let retirement property, or if you are a seasoned investor, expanding your current portfolio, our team at IGrow will walk your property journey road with you.
Concluding thoughts
Being a retiree who invests in buy-to-let properties is a highly effective way to allow your family to thrive off a property portfolio you created for yourself, but with them in mind. If you are learning how to build a buy-to-let property portfolio or if you are seeking the best buy-to-let properties to meet your long-term goals, a clear strategy will allow you to leave a lasting legacy for your loved ones and future generations. If you follow the tips and steps outlined above, and partner with our team at IGrow, you will retire and remain financially independent. You will also have the ability to leave a legacy to your children and grandchildren and the love you have for them will last and shine through, having secured their financial freedom.
Chat to an IGrow Property Portfolio Wealth Planner today and feel financially free!
“Fortunately at IGrow we have an experienced team of qualified property investment advisers, with excellent track records, who can greatly increase your chances of success. Using our proven property investment planning process, our team is helping hundreds of South Africans with their property portfolio investment strategies.” – IGrow Property Portfolio Team
