Some Things to Consider for Your Retirement

Australian superannuation retirement savings can grow 7% and then fall 7% the very next year, or lose $90 billion in one week as they did not that long ago.

There are investment approaches in property subsectors that have significantly less volatility and outperform the share market in the short and long term.

If superannuation funds invested a larger portion of their funds in this actively managed property asset class for steady growth, instead of the unpredictable and skittish stock market, then investments intended for retirement can expect double digit growth, compounded with income reinvestment and a first world lifestyle into old age.

Demand for Land is Only Going to Increase

Given that development land is a finite resource, and as Australia’s population and immigration steadily increases, there will be more demand for residential, commercial and industrial space.

Logically development land prices are going to increase at an ever-increasing rate. This dynamic makes real estate a very forgiving investment classes as.

If you choose to invest in growth locations, there will be even greater demand for completed property and accelerate development and prices ahead of the market in general.

stone set house

Real Estate is a Tangible Investment

Another advantage of investing in development land is the fact that it is always there, it is tangible, and cannot disappear or fall to zero value on sudden market sentiments like a electronic markets which can suffer shocks and collapses.

The Return Potential is Strong

The requirement for Real Estate is always there. In free markets, new businesses opening all the time, driving development and construction activities and increase the market price value of development land through demand.

Actively managed land acquisitions can often double or triple the disposal price depending on the location and what is being built.

Picking the right development project in the right area, at the right time, with the right property product takes expertise. Therefore, a managed fund that is continuously researching and conducting due diligence on development land and managing assets in a diversified portfolio is a strong and stable investment approach.

Most investors don’t have sufficient investment capital to take advantage of this approach on their own. Pooling with other investors in the Enhanced Land Fund and Premium Income Fund (both sub funds of The Guardian Investment Fund ARSN 168 048 057) produces a collective buying power to invest in development land and downstream developed property.

It also provides the reassurance of a professionally actively managed portfolio of property assets, ideal for superannuation investment with the safety of property with the performance of the share market..

Rod Mackay

Author Rod Mackay

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