How to invest in property for retirement

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Choosing to invest in property in order to fund retirement continues to be a prevalent decision in SA, but one that requires serious consideration and groundwork.

According to Ricardo Teixeira, strategy consultant at Acsis, how retirees choose to invest in property is crucial in determining the rewards that can be reaped, as well in determining the type of lifestyle led while in retirement.

He explains that investors looking to fund retirement with property could consider two options, either investing in a property unit trust listed on the JSE, or by actively purchasing property directly and leasing it out to tenants in order to accumulate retirement funding.

“Choosing to take an active ownership role by managing a tangible asset requires substantial time and energy, whereas taking a more passive part ownership approach by investing in a property unit trust requires less input and effort from the investor.”

Teixeira says that the key to successfully investing in property is to understand what to invest in, when it is appropriate to invest and the decisions that will impact on that investment. “

However, the most important aspect to consider is how investors see themselves managing these investments whilst in retirement.”

He says that investors considering direct property retirement investments for retirement funding need to consider how the property and the maintenance of the property will be managed, as well as how the invoicing and financial aspects will be handled. - Saturday Star

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