Broker busts property investor myth

Older Australians should not fear investing

Broker busts property investor myth


By Jayden Fennell

A Melbourne mortgage broker is busting the ‘myth’ of being too old to invest in property.

Sprint Finance broker Nathan Massie (pictured above) said Australians are working longer and their life expectancy is increasing, however the perception of lenders not willing to lend past a certain age simply is not true.

“The reality is for older Australians looking to invest in property, banks are open to the idea provided we, as brokers, can show how our client can exit the loan and provide a strategy to do so,” Massie said. “Banks have definitely taken a more lateral view when it comes to lending to older Australians.”

Massie said mortgage brokers work in a service-based industry and they can help their clients by providing solutions to their finance issues.

“I have increasingly found people wanting to invest in property as the Australian housing market has proven time and again to be sturdy and resilient,” he said. “I believe the ability to invest in assets should not be limited to people just because they are over the age of 50. In the current market conditions, if you were to buy property you might not see the financial growth this month or next but have the ability to look forward 10 to 15 years.”

Massie said this perception could be holding potential investors back.

“I have found when having conversations with investors, they will come to me and say they believe they should look at a shorter loan term, however this will bring much higher mortgage repayments,” he said.

“Higher repayments impact a client’s cash flow and, as a result, they might not be able to service the loan. People are looking for additional ways to generate wealth and cash flow with the cost-of-living increasing, and property can do both.”

Massie said in the last couple of years, he has been seeing an increase in clients wanting to invest in property in their own name, rather than a company name or superannuation fund.

“The willingness to purchase at an older age is increasing year-on-year and with people realising their superannuation is often not enough,” he said.

“Historically, when someone had a median home that was priced at $1 million, that was seen as an amazing achievement, however now in 2022 that price is below the median home price in Sydney and Melbourne.”

Massie said older Australians looking to invest in property should consult a mortgage broker.

“My advice to older people wanting to invest is understand the reasons why – are you looking for an additional income stream, are you looking for capital growth, how long are you planning on holding on to this property. You need to know the answers to these questions first and foremost,” he said.

“You must do your own research and be methodical about your decision. Purchasing an investment property needs to be a calculated decision and these rate rises are affecting everybody’s borrowing capacity, so ensure you have your pre-approval and know exactly how much you can borrow before you go investment-property shopping.”

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