Well, most of us have now returned from our extravagant holidays, and are stuck into our second or third week back at work. It can be tough to bounce back into work-mode, especially in this first month, after the fun and excitement of the Christmas/ New Years’ holidays. A lot of us, at this point, wish we could retire sooner, and overcome the January Blues. We dream of Pina Coladas, and an exotic beach somewhere; basically, anywhere else to soak up the sunlight than behind a desk. The truth of it is, to retire early, we need to ensure that our usual source of income has been replaced, and that we can afford to live sufficiently without working. For most of us that dream of a lavish, luxurious retirement; the truth of replacing our income is even more prevalent. One major avenue of replacing our usual source of income is through property investment. Investing in property is one of the best ways in which we can achieve ‘passive income’. Passive Income refers to earnings that an individual can derive from an enterprise he or she is not materially involved in. Essentially, it is money earned regularly with little or no effort on the part of the person receiving it. By investing in property, we can direct funds earned here towards other tasks and responsibilities within our lives. For those of us who wish to retire sooner, the presence of passive income would not only make this process possible, but through strategy and effectiveness in investment, multiple sources of passive income (i.e. investments) would render this process even more comfortable. Consider this; a $400,000 property would be worth: - $863,570 in 10 years’ time - $1,268,868 in 15 years’ time - $1,868,383 in 20 years’ time To put this into context, a 30 year old who invests in a $400,000 property can expect to have a property worth $863,570 at the age of 40. Even after capital gains tax, this property will net about $425,000 in 10 years time; this being off just one property! Most who look at property investment from a long-term standpoint would even consider using the equity earned from this property to reinvest, further developing their property portfolio. Furthermore, it’s never too late to capitalize on the power of property investment and compound interest. Property is assessed at 8% compound interest per annum, and the numbers you see here are really the power of re-investing the interest earned, year on year. Albert Einstein once said “Compounding is the eighth wonder of the world. He who understands it, earns it. He who doesn’t, pays it”. At Calla Property, we look at over 100 drivers of capital growth and rental stability to ensure you invest in the right property at the right time in the right place. So many of our clients have developed this mindset of working towards an early retirement, and strategically investing their money in property, and we thrive off being the team of experts that help them along the way. At Calla Property, we help you to create your very own ‘wealth creation team’ of trusted advisers whose primary focus is to ensure your success. We consider both where you’re going, and where you’re at; in matching you with the best investment property for your investment goals. So what are you waiting for? Let us help you plan for your retirement and get you out of the January Blues as early as possible! Contact us today; on 02 9016 2852 or visit our website and fill out a webform – www.callaproperty.com.au.