Smart leaders position themselves for early retirement

7 Jul 2015
If you’ve spent the lion’s share of your life building a business, a brand, a name for yourself, once the gold dust of success has settled, you’re likely to be focusing on more personal goals and relationships.

An early retirement would give you the time to direct attention towards your own growth and happiness. Whether it’s exploring more of the world, spending quality time with your loved ones, finally settling down to write that book, working on your handicap, or drinking cocktails on a beach, your ideal life is waiting for you to make it happen – and so, the earlier, the better.


Retirement portfolios are changing

Retirement need no longer be a case of working as hard and as long as possible while waiting for a pension payout. With planning and insight, leaders are ensuring they are financially geared for a more comfortable early retirement. The Guardian took an interesting look into the UK retirement scene and found that:

  • An increasing number of UK residents are turning to property investment as an effective portion of an early retirement plan.  

  • One in three people are replacing a pension plan with property to fund retirement, with many setting themselves up to receive income from more than one property.

  • Due to the growth in property value, many are benefiting from lucrative buy-to-let yields.

  • Pension schemes are deemed to provide paltry annuity rates. They can also be uncertain as company returns depend on investment performance and limited as funds can’t be withdrawn before 55.

  • Property paints a positive picture, showing annualised returns of 11.2% as opposed to 5-7% on equities and bonds.


But it’s not only the British property market showing promise. Investment profitability in places like Calpe show increases of between 4 and 22%. Foreign investment not only effectively diversifies your property portfolio, but also your potential for return is greatly improved by selecting property in regions with high rental demand. A well-regarded town in the Costa Blanca north is likely to yield excellent returns.


How to evaluate a potential investment to support early retirement

When planning for retirement careful consideration is key, so before buying that property it’s vital to:

  • Assess the tax implications of your potential investment.

  • Research local market and tenancy capabilities to determine average rental rates assuming you could charge similarly.

  • Do the maths. Equity valuations are made by gauging absolute and relative value. In this article Arthur Pinkasovitch offers detailed methodology to evaluate your potential real estate.


Lifestyle benefits

Although its income generating capacity is important, ideally you also want to select a property in a part of the world that you love, so you can also enjoy that new home for yourself. You may choose to rent out your property during the busier summer months and then escape the British winter in the warmer climes of Spain. If you’re interested in properties for sale Costa Blanca, a premier location like Calpe offers:

  • A sense of small-town hospitality alongside big-city facilities.

  • Beautiful surroundings: From colourful narrow streets in the old town, clear blue seas and seemingly endless beaches to take those long evening strolls.

  • Spanish cuisine, fresh fish from the morning fish auction, and an abundance of Valencian water, a local cocktail made up of Valencian oranges, cava, rum, gin, Cointreau and sugar over crushed ice.

  • The Marina Real Club Nautical Calpe offers luxury yachting, nearby golf courses and world-class spas.
    Spanish cuisine

An early retirement to the Costa Blanca may seem like a mere dream but with the right planning and investment it’s within your reach. For more information regarding properties for sale in Costa Blanca, contact Grupo Esmeralda, specialists in the Calpe property market.

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