"I am a 30-year-old childcare worker, earning $50k per year. I would like to invest, have always thought about property, but not sure if that will be the best strategy"
- Hannah in Canberra, ACT
Top answer provided by:
Hannah, great question and kudos to you for exploring your options before you dive into the world of investing.
When it comes to choosing how you might invest, it can help to think of it as planning a trip overseas, (back when they were a thing…).
When planning a holiday, we generally:
- Choose our destination
- Work out when we’ll leave, how long we’ll stay there and how quickly we want to get there
- Then we choose our airline, flights and specific seats.
- We head off.
But when it comes to investing, a lot of people do it the other way around: They choose the flights first (which investment they’ll make) without thinking about the destination (their actual goals).
So, before deciding if property is the best strategy or not, I suggest writing down a few objectives you want to achieve with your investments.
For instance, you might be investing to own your own home faster or to become financially comfortable when you’re older. It might be to save up for a house deposit, or a big trip overseas, or to start your own business or any of a million other things.
Once your destination is really clear, you can go backwards to work out which investment option is ‘best’ - for you. Because for certain objectives, property will definitely be the best option.
But for others, it might be the absolute worst choice.
Each investment has its own characteristics, its own pros and cons. And without knowing where you want to go, it’s really, really hard to know which airline is the best fit for you.
This is where a financial adviser can really help – they can work with you to help you articulate your own personal, financial ambitions, then put together a plan to help you achieve them. And in that plan, they can build you your own investment portfolio, structured to give you the best chance of building your best financial future. Which may, or may not, include property.
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