Six reasons to lay your future financial foundations, now.
More than half of the Australian population won’t have enough savings in their superannuation to retire comfortably, the majority being women. Whether you’re in your 20’s or 50’s, it is never too soon to start looking at what kind of investment portfolio suits you and your lifestyle, to boost your retirement fund.

Why should you start investing now?

Cost of living inflation
This consideration will always be a factor in adult life and will continue to escalate over time. What you have to retire with today won’t hold the same value in 10 years’ time, and is a furthering component as to why so many Australians today don’t have enough to comfortably retire with. Investing and building your wealth can counteract the effects of inflation.

The power of compounding
When you invest well, you will receive returns not only the original amount you invested but on-top of the returns your dollars earn as you go. Essentially, returns on your returns, which snowballs (or compounds) the longer you keep that investment. The longer you’re investing for, the larger the compounding effect. Property prices double every seven to 10 years, so being in it for the long haul is where you are going to get the most impact.

Earning potential limits
The majority of Australians are employed for the standard 5 days/ week, at 7.5 hours/ day. This limits your ability to earn past that limit, and there are only so many contributions you can make towards your super and retirement without taking away from your current quality of life.

Tax deductions
When it comes to investing in property, an additional advantage is your ability to save money through reducing your tax liability, by claiming the mortgage interest, running costs and depreciation on your investment property against the income you earn (from the investment and your day-to-day job.

Increasing retirement age
Recently, the age of retirement increased to 67 years. Many people see this as an incredibly long time to wait before clocking out of the workforce and making the most of the next chapter (especially when the life expectancy is 83!). If you want to retire sooner, you’re going to need to fatten up the bottom line via other means.

Because everyone else is
According to Finder.com, 51% of Australians hold investments, with Millennials being the most likely generation to hold an investment at 61%. If your peers, family and friends are investing now and you are not, they will be living a very different life to you post-career.

Investing in a property portfolio
Building and purchasing houses for rental income can create equity in the assets which can be used or liquidated in the future when needed. Investing in property offers the advantage of earning a steady income through rental yields, while potentially reducing your tax. By leasing the property, you can create a nest egg for retirement or use the additional, passive income to help fund your goals.
Investing can seem like an overwhelming concept that, if you haven’t had any exposure to it before, can put you off before you even get started. That’s why we created Locale Wealth, to help people change their future with our support.
Can I afford to invest in property?
Locale’s Property Investment Strategists know a think or two about finding ways for their clients into the investment market. It may seem daunting and you may have inbuilt beliefs that you cannot afford to make this kind of financial strategy part of your portfolio. However, investing in property, in Western Australia is not as overwhelming as you think.
One of the biggest barriers people face when it comes to property investment is the belief that they need significant savings to get started. This can feel like a major roadblock, especially if you’re busy managing everyday expenses or other financial commitments. But there’s good news: you may already have what you need to invest.
Lazy Equity
This is the available and untapped potential in your existing home — the difference between your property’s current market value and what you owe on it. You can use this equity as the deposit for your investment property without having to come up with any additional funds.
If you have paid down your current mortgage and/or your home’s value has increased since you last financed the mortgage, you will have built up equity.

Bigger borrowing power
When the bank or lender evaluates how much you can borrow for an investment property, they have different considerations to an owner-occupier loan. With an investment property, they are expecting a rental income to comprise some or most of the repayments (and in this current economy, rental income is high) rather than simply the income from your salary or wage. So the borrowing power for your investment property is typically higher, giving you more options to purchase a strategic property.
Can I afford to invest in property?
Let’s see how much you can borrow.
Chat with one of our in-house finance experts to find out how much you can borrow and invest.
Get started with some FAQs
To measure the success of your property investment, evaluate your investment portfolio by assessing rental yield, capital growth, and overall return on investment (ROI). Regularly review your financial goals to ensure they align with your progress toward financial freedom and financial security.
We have tools to help with managing cash flow effectively, but in simple terms management consists of having a detailed budget, monitor rental income and expenses, and plan for unexpected costs. Ensure you have a financial buffer to cover periods of vacancy or repairs.
By knowing your savings, income, expenses, and current equity we can help you understand your budget to invest. During the discovery session an estimate of how much you can borrow and afford will be offered.
While yes, there is a financial component to being able to invest, the bigger factor is your mindset. Do you want to take some time out of your busy life to sit and think about what you want your future to look like, and create a plan to get there? Or, are you going to continue on with your day-to-day life and expect that your retirement plans and savings are going to sort themselves out?
Waiting for the perfect time is not the answer. The best time to invest is now.
Are you ready to see what your financial potential is and build a life that you really want?
By making this session you are taking the first steps to financial freedom. All you will need to do is answer some questions which our team will talk you through. Our approach is to understand your needs and aspirations.
Before we meet, we do suggest thinking about the following questions: What are your financial goals? How much do you have in savings? When would you like to retire? Do you know your borrowing capacity? (it’s ok if you don’t know, we can help).
Common mistakes include:
- Overestimating rental income: Conduct thorough market research to set realistic rental expectations.
- Underestimating costs: Factor in maintenance, property management fees, and potential vacancies.
- Neglecting due diligence: Conduct thorough property inspections and research the local market.
- ‘Get rich quick strategies like flipping properties and buying in high speculative locations: Focus on long-term, sustainable growth rather than chasing short-term gains through speculative investments. By holding properties and allowing their value to appreciate over time, while the value of your loan decreases due to inflation, you can build a solid financial foundation.
- Stopping at one property: One property might be all you are comfortable with at this time, and that is perfectly fine – however, it is unlikely that the income from it will be life-changing in the short term.
At Locale Wealth, we help you avoid these pitfalls by:
- Providing expert guidance: Our team offers in-depth property analysis and market insights.
- Partnering with trusted professionals: We connect you with experienced finance brokers, accountants, property managers and more.
Setting realistic goals: We help you develop a sustainable investment strategy aligned with your financial objectives.
Property investment is a powerful tool for building wealth due to its potential for steady rental income and capital growth. By acquiring multiple properties you can generate a passive income or take advantage of potential tax reductions, while building equity through property appreciation. By strategically investing in real estate, you can create a sustainable, long term income source and accumulate assets, leading to greater financial security and independence. This approach is integral to reaching long-term wealth creation goals.
We are laser focused on targeting emerging and booming markets, so you can ride the capital growth wave, empowering you to grow portfolio in a strategic manner.