Have you ever thought about how much money you need for retirement?
According to an article by News.com.au, the MLC Quarterly Australian Behaviour report/survey suggests that you need about $818,000 in savings and investments to retire.
If you are one of those people who already have more than this amount, then good for you. But for those who are worried that they cannot possibly come up with that kind of money, you might be surprised to find out that there is one retirement asset you might have overlooked – at least according to news.com.au…
What is Australia’s most forgotten retirement asset?
The answer to this question is not jewellery or stocks, but rather something that you spend most of your time in. It is the place where you relax with your family and friends. Your most important asset is your own home.
I hope you are among the people who do realise how valuable an asset your home is. Hopefully, you have more assets in terms of savings and investments, so you won’t even need to consider selling your home. But at least you have the option.
It is quite surprising that Australians should forget about their own homes as an asset. Given the rising Sydney housing market, Australians should all be well aware of the value of their homes. This applies to those who already have enough cash for retirement as well.
The same article also says that the average worth of an Australian home is $442,000. Your Sydney home is probably way above that.
Adding more value to your home
According to Commbank.com.au, a well-executed renovation to your house can add an additional 10% to the property’s value. The same article even suggests that renovations can be tax deductible or depreciable after some time. This will potentially reduce the amount of tax that you will pay in the future.
A good rule is to keep things simple and neutral. Your personal taste should not be a factor when it comes to renovating your house for value-adding purposes. If you are in any doubt, it would be wise to seek professional advice when it comes to this matter.
If you live in the northern suburbs of Sydney and are contemplating a renovation or addition, feel free to give me a call.