Is It Too Late to Invest in Property After 50?

If you’re over 50 and considering investing in property, you’re not alone — and it’s certainly not too late. This stage of life can offer strategic advantages for property investment, provided decisions are made in line with your financial goals, risk tolerance, and retirement timeline.

Here’s what to consider — from lending criteria and cash flow to superannuation and risk management — with a focus on informed decision-making rather than financial product advice.

Longevity Offers a Longer Investment Horizon

Australians are living longer, with many expecting to live into their 80s and beyond. That provides a potential investment horizon of 20 to 30 years — enough time for a well-selected property to generate capital growth or rental income.

What matters most is how the property investment fits into your broader strategy. Your goals, retirement plans, and income outlook should all inform the structure and timing of any investment decisions.

Compliance note: No specific investment or property type is recommended; a holistic view of goals and financial situation is required for personal advice under ASIC’s best interest duty.

You May Still Be Able to Borrow

Lenders may still offer loans to borrowers in their 50s and 60s, but they will assess your ability to repay within a shorter loan term. This may require higher repayments or a planned exit strategy, particularly as retirement approaches.

Some individuals access equity from their current property to reduce cash outlay. However, this increases overall debt exposure. Any strategy that involves gearing (borrowing to invest) must be assessed for suitability, including:

• Timeframe (generally 10+ years for gearing)

• Cash flow capacity

• Risk tolerance (typically suited to high-growth profiles)

• Exit strategy and retirement plans

Important: All gearing advice must comply with your licensee’s gearing policy and may only be provided by advisers with appropriate authorisation.

Cash Flow Becomes Critical as Income Changes

As retirement approaches, cash flow becomes more important than capital growth. If the property does not generate sufficient rental income, the shortfall must be met from savings — which may compromise your retirement income strategy.

Before investing, understand:

• All ongoing costs: loan repayments, rates, strata, maintenance

• Rental yield and income stability

• Sensitivity to interest rate changes or vacancy

A positively geared or neutrally geared property may be more suitable at this stage of life, though this depends on your full financial picture.

Reminder: You should consider seeking financial advice if unsure how the investment may impact your retirement income or superannuation strategy.

Property Through Super

Investing in property through a self-managed super fund (SMSF) is a complex strategy that must be approached with care. It may involve a Limited Recourse Borrowing Arrangement (LRBA), which is highly regulated.

Key risks and obligations include:

• Limited diversification: a single property can dominate your super balance

• Higher lending costs and stricter rules

• Compliance with the fund’s investment strategy and trust deed

• SMSF trustees must consider insurance needs and liquidity risks

• The strategy must demonstrate appropriateness and benefit to members

Critical: Licensee policy prohibits execution-only implementation of SMSF property strategies. Advice must be fully documented in an SOA and peer-reviewed.

Risk Management

As your financial runway shortens, the stakes become higher. Making emotionally-driven or FOMO-based decisions can expose you to unnecessary risk.

Be mindful of:

• Over-leveraging: just because you have equity doesn’t mean you should use it all

• Lack of diversification: property should complement, not dominate, your portfolio

• Exit plans: ensure the property can be held if income drops or the market turns

• Insurance: ensure appropriate cover exists for life, TPD, and income protection if relevant

One well-chosen property can still enhance your retirement income, but only if it aligns with your financial and personal goals.

Final Word: Strategic, Informed Investment is Key

Property can still play a role in your retirement planning after 50 — but it must be approached strategically, with clear understanding of your cash flow, risk appetite, and retirement goals.

Before proceeding, ask yourself:

• What do I want this investment to achieve over the next 10–20 years?

• Can I afford to hold the property during downturns or if my income drops?

• How does this fit with my superannuation and estate planning?

Important Compliance Note:
This article is for general informational purposes only and does not constitute financial or tax advice. It does not consider your objectives, financial situation, or needs. Before making any investment, borrowing, or superannuation decisions, seek advice from a licensed financial adviser and ensure you understand all associated risks. Gearing strategies, SMSFs, and LRBAs must comply with the Corporations Act, ASIC regulations, and relevant licensee policies.