Australians love property. For many, it’s seen as the ultimate path to wealth. But as retirement approaches, property can become more of a challenge than a solution. Financial expert Jason Featherby from Leeuwin Wealth joined Table Talk with Doug to share his advice on property, super, and planning for the years ahead.
Should You Keep Property in Retirement?
Property has been a great investment for many Australians. But Jason explained that retirement changes the equation.
“Property can have some drawbacks in retirement,” he said. “It’s not always liquid. You can’t just sell a couple of tiles if you need money for a holiday.”
If you have strong super and no debt, holding onto an investment property might make sense. But if property is your only major asset, Jason encouraged getting advice on when and how to sell.
Timing Matters
Selling property isn’t just about whether you want to. Timing is crucial.
“If you’re earning a high income and in the top tax bracket, it might be best to wait until after you retire to sell,” Jason explained. “That way, you can reduce capital gains tax.”
Market timing also plays a role. “You don’t want to sell in a downturn if you can avoid it,” he said.
Income vs. Yield
Many people rely on rental income. But Jason pointed out that rental yields are often too low for retirees.
“In Perth, rental yields are usually 2.5 to 3%,” he said. “That’s a pretty poor return compared to 4.3% on a term deposit, or 5% on blue chip shares.”
On top of that, property can sometimes produce no income at all due to vacancies or unexpected repairs.
Balancing Risk in Super
One listener asked if she should shift her high-risk super into a balanced option at age 55. Jason’s advice was straightforward.
“Yes. Ease it back,” he said. “You may give up a little upside, but you’ll protect yourself if the market falls. You’re never wrong to be a little more careful as you get older.”
How Much Do You Need to Retire?
The big question is how much money is enough. Jason said the numbers are clearer than many think.
“For a comfortable retirement in Australia, a couple needs around $700,000 in super,” he explained. “That provides about $70,000 a year to live on.”
That amount allows for holidays, private health cover, and eating out. For a modest retirement, the figure is closer to $50,000 a year, with about $450,000–$500,000 in super.
Final Thoughts
Property can help build wealth, but it’s not always the best tool for retirement. Liquidity, tax efficiency, and steady income are critical.
Jason’s key message was simple: “Get advice, have a plan, and use super to your advantage. The more you can control, the less you have to worry about in retirement.”