A Finance blog by Paul Bennion.
Australia’s ageing baby boomers now account for over 70 per cent of all tax depreciation reports undertaken by DEPPRO, Australia’s leading tax depreciation specialist.
According to Paul Bennion, Managing Director of DEPPRO, an increasing number of baby boomers view property investment as a low risk way of building wealth for their retirement – particularly compared with the stock market.
“Many baby boomers are concerned that superannuation alone may not provide sufficient funds during their retirement years, which could now be more than two decades,” he said.
“They are looking for other means to securing their financial future and property investment is increasingly being seen as a secure way to a comfortable retirement.”
Bennion believes baby boomers are well informed about property investment opportunities and have very high confidence in the future of the real estate market.
“Many of these investors have been involved in the property market for a long time through owning their own home. They understand the long term capital growth rates that property ownership can deliver and the taxation incentives that are possible through negative gearing and property depreciation.”
The growing popularity of Self-Managed Superannuation Funds (SMSF) is also drawing baby boomer investors to the property market, with many people buying investment properties through their SMSF as a result of recent rule changes.
“Baby boomers are realising they can leverage the large amounts of equity they have in their owner occupier homes to organise home loans in excess of $1 million to purchase more than one property, build an investment property portfolio and gain significant tax benefits,” Bennion said.