# Property Investment Para sa Retirement Income
Maraming Kiwis ang nag-iisip ng property investment bilang retirement income source. Ang idea ay simple: bumili ng rental property, i-pay off ang mortgage bago retirement, at enjoy ang rental income. Pero ano ang realities?
Ang Appeal ng Property Investment
1. Tangible Asset
- •Makikita at mahihipo mo
- •Familiar sa karamihan
- •Hindi kasing volatile ng stock market
2. Regular Income Stream
- •Monthly o weekly rent
- •Predictable (mostly)
- •Adjusts sa inflation (through rent increases)
3. Capital Growth Potential
- •Property values ay historically tumaas
- •Additional wealth building
- •Legacy para sa family
4. Leverage
- •Maaaring bumili gamit ang borrowed money
- •Magnifies returns (at risks)
Ang Realities
Not Passive Income
Ang property investment ay involves:
- •Tenant management
- •Maintenance at repairs
- •Compliance (Healthy Homes, etc.)
- •Financial admin
Kahit may property manager (typically 8-10% ng rent), may involvement pa rin kailangan.
Yield Calculations
Gross Yield:
Annual rent ÷ Property value × 100
Example:
- •Property value: $600,000
- •Weekly rent: $550
- •Annual rent: $28,600
- •Gross yield: 4.77%
Net Yield (More Realistic):
(Annual rent - Expenses) ÷ Property value × 100
Expenses kasama ang:
- •Insurance (~$1,500-$3,000)
- •Rates (~$2,500-$4,000)
- •Property management (~$2,300-$2,900)
- •Maintenance (~$2,000-$4,000)
- •Vacancy allowance (~$1,000-$2,000)
Net yield ay often 2-3.5% - much lower than gross.
Concentration Risk
Kung ang lahat ng retirement savings mo ay sa isang property:
- •Localized market risk
- •Property-specific issues (earthquake, etc.)
- •Tenant problems
- •Regulatory changes
Practical Considerations para sa Retirement
Mortgage-Free Target
Para sa reliable retirement income, ang mortgage ay dapat bayad bago retirement:
Example:
- •Property value: $600,000
- •Net annual income: $18,000
- •Monthly income: $1,500
Kasama ng NZ Super (~$2,250/month), total income: ~$3,750/month
Cash Reserve Requirement
Kailangan mo ng cash reserve para sa:
- •Major repairs (roof, hot water, etc.)
- •Vacancy periods
- •Insurance excess
- •Unexpected costs
Recommended: 6-12 months ng expenses (~$10,000-$20,000)
Exit Strategy
Isipin kung ano ang plano mo:
- •Hold forever at pass to kids?
- •Sell at retirement?
- •Sell kapag sobrang mahirap na ang management?
Alternatives at Comparisons
REITs (Real Estate Investment Trusts)
- •Listed on stock exchange
- •Diversified property exposure
- •No management hassle
- •Liquid (easy to sell)
- •Lower entry point
Shares at Index Funds
- •Historically similar or better returns
- •Much more diversified
- •Truly passive
- •No maintenance or tenant issues
- •Easy to draw income from
Comparison: $600,000 Investment
| Factor | Rental Property | Index Fund |
|---|---|---|
| Annual Income | ~$18,000 (net) | ~$18,000 (at 3% draw) |
| Management | High | Very low |
| Diversification | Low | High |
| Liquidity | Low | High |
| Stress | Higher | Lower |
Mga Hakbang Kung Property Investment ang Gusto Mo
1. Calculate Realistically
- •True net yield (lahat ng expenses)
- •Total capital needed (deposit + costs + reserve)
- •Mortgage payoff timeline
2. Consider Location Carefully
- •Population growth areas
- •Rental demand
- •Infrastructure development
- •Diversification kung kaya (different areas)
3. Get Professional Help
- •Accountant (tax implications)
- •Property manager (kung hindi hands-on)
- •Insurance broker (adequate coverage)
- •Lawyer (structure, contracts)
4. Have Plan B
- •What if values drop?
- •What if major repairs needed?
- •What if regulations change?
- •What if tenants stop paying?
Key Takeaway
Ang property investment ay maaaring maging good retirement income source, pero hindi ito simple o passive. I-calculate ang true net yield, factor in ang lahat ng risks at work involved, at i-compare sa alternatives. Para sa iba ito ay excellent choice, pero para sa iba ang diversified portfolio ay mas suitable.
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