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Have you thought about how you are going to fund your retirement? Recent studies have shown that more Australians are turning to the property market to help fund their retirement lifestyle.

According to a recent report by ING direct, Australians are turning to property, inheritance and savings to fund their retirement as many do not believe their superannuation will be enough to support their needs. The Australians surveyed believe that their superannuation will only account for 35.8% of their retirement nest egg. As a result, they are looking for other financial options that can help boost their retirement income. According to this report, Gen Y expect their retirement income to come from savings (20%), property (13.1%) and inheritance (7.1%).

For a long time now, property has been seen as a stable investment as it can provide steady income over a long period of time. Also, with interest rates at an all time low, mortgage repayments may be more manageable and it will also give mortgage holders the opportunity to make extra repayments and pay off their home loan sooner and reap the full rewards of the rental income.

If you are considering property investing to fund your retirement, there are a couple of things to consider:

Location, location, location

This is one of the most important factors when it comes to property investing. When you reach retirement, you should aim to have your property tenanted all the time. When doing your research, think about what the area and property will be like down the track. Is the property close to amenities such as shops, schools and public transport? Are their plans to develop the area to include these types of amenities. You need to think long term when it comes to finding the right location to ensure it is still going to be an area in demand in 10 or 20 years.

Easy to maintain

Your retirement years should be about relaxing and doing the things you enjoy, so you don't want to have a property that requires a lot of maintenance. Constantly receiving maintenance calls about leaky taps or broken doors can put a damper on your lifestyle. So, try to find a property that you can set and forget about. Even if you want to find a property that you can renovate now, make sure it will be easy to maintain in the long run.

A strong portfolio

You may think that one property will be enough to fund your retirement, but this may not be the case. According to propertybuyer.com.au CEO Rich Harvey, "the average $500,000 sort of property is going to bring in about $20,000 of rent each year." This means that it may take up to six properties in order to achieve your retirement financial goals. So, before you start looking for properties, sit down and work out a realistic property investment plan. Decide how many properties you would need and whether you will be able to afford the mortgage repayments of multiple properties. This will help give you a direction and also a budget when you go out house hunting.

This report should act as a wake up call to Australians to familiarise themselves with their super and research whether they will have enough money to fund the lifestyle they would like during retirement.

To get started investing in property, you need to determine what is possible. Finding out what you can afford and how much you can potentially borrow is a good first step. You can do this easily by doing an instant online pre-approval with State Custodians or by phoning our lending specialists on 13 72 62. Always seek the advice of a financial planner or accountant to ensure that this investment strategy is the right one for you.