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Real Estate as Part of Retirement Portfolio

Planning for retirement is an important part of ensuring you live comfortably as you grow older and having a diverse portfolio of assets can help you achieve that goal. The real estate part of retirement portfolio management has the potential to be an excellent addition to your retirement plan. Our team has put together this blog to help you understand the benefits of including real estate in your portfolio and the expenses you should plan for.

Oak Tree Finances will help you steer through the twists and turns of owning property. Our mortgage broker Gold Coast specialists are ready to answer your questions and get you started on your real estate part of retirement portfolio planning.

Defining a successful retirement portfolio

People have different concepts about the meaning of wealth and retirement so, an important first step is to define what they mean to you. The answers you come up with can help provide a roadmap for using property in your retirement portfolio.

  • When do you want to retire?
  • How much do you need to retire?
  • What type of budget do you have?

Consider how you want to use the property you are investing in and how it will fit with the answers to the questions above. Do you want to own a large piece of property or several smaller pieces? Will you use the property to generate rental income or develop it to sell in the future and take advantage of its potential increase in value? Take stock of all your options to make an informed decision about what works best for you.

Benefits and drawbacks of investing in property

The real estate part of retirement portfolio planning can appear to be straightforward and less risky than other types of investing. Here are a few ideas to keep in mind if you’re to look at adding real estate to your portfolio.


  • Tax deductions – The majority of property expenses can be offset against rental income; this includes the interest on loans used to purchase the property.
  • Depreciation – New property will allow depreciation claims each year which can improve the tax effectiveness and cashflow from the invetsment
  • Capital growth – If the property goes up in value, upon sale you can take advantage of a capital gain.
  • Available to anyone – Investing in property takes no form of specialised knowledge however, it is best to do research and take appropriate cautions.
  • Physicality – You can touch and see your investment.
  • Income – You can create rental income when people stay on the property
  • Stability – Property fluctuates less than other investments.


  • Entry Costs – Assorted fees and duties are required to be paid when you buy and various costs such as agent fees and capital gains tax when you sell. These entry costs are normally greater than other investments such as shares.
  • Holding Costs – The income from a property may not always be sufficient to cover its mortgage payments and other costs.
  • Vacancy – It is entirely possible that your property may be vacant for periods of time.
  • Capital Loss – Just as property can increase in value there is also a risk they can decrease in value.
  • Lack of flexibility – In cases where you need cash quickly you can’t sell off the part of the property as you cpould with shares where you could sell part of your holdings.

Self Managed Super Funds and Property Investment

Self Managed Super Funds (SMSF) are a form of superannuation which allows for the direct investing or purchasing of property. Residential or commercial property may be purchased and the regulations behind each are distinct so, it’s important to understand the differences and similarities.

The golden rule

Properties purchased with SMSFs must provide retirement benefits to the fund members. This is true for both residential and commercial properties.

Residential property

When an SMSF purchases residential properties, the purchase cannot be from someone related to the trustee. Additionally, it must be lived in or rented by someone who is not related to a member of the trust or belonging to the trust.

Commercial property

Using a SMSF to buy commercial property allows it to be used by members of the fund at current market rental rates.

Looking to add to your retirement portfolio?

Oak Tree Finances is a specialist mortgage broker that will help you find the appropriate investment property home loans needed to accomplish your retirement plan. We work hard to make sure you have a plan personalised to your desires and portfolio goals.

Interested to learn more?

If you are seeking to add property to your retirement plan, or are ready to make the jump, Oak Tree Finances are here to help. Our home loans Gold Coast team are proficient at helping businesses and individuals get the best outcome no matter where you are. Reach out to us on 0404 403 066 or contact us through our online form.

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