Loan pre-approvals by banks can be confusing. They aren't a rubber stamp to buy whatever you want, but some buyers are being a little too cautious.
Why financial security should be your priority
According to the Australian Bureau of Statistics, 1.6% of the population was aged 85 years and over in Australia at 30 June 2007. This group is projected to grow rapidly to between 4.9% and 7.3% of the population by 2056.
So the release of the Federal Government’s Living Longer, Living Better aged care policy earlier this month returned a vitally important issue to the centre stage of public debate; for obvious reasons, we all have a real stake – for ourselves and for our loved ones – in policy makers getting aged care provision right.
The announcement reminds us of the increasing challenge facing Government to help us in our older age, and the limits of the State to provide towards a comfortable retirement. There isn’t a bottomless pit of funds, and the Government has signalled that in the future we will all have to contribute more than we do today.
With this wake up call, the only reasonable approach for those who have the means to do so is to prudently invest in growth assets in the years and decades leading up to retirement. With its consistent track record of strong performance, I believe well selected residential property should play a part in any long-term investment strategy.