• Real Finance

How many rental properties do you need to retire comfortably?

Updated: Apr 4

If you've been looking into retirement planning and real estate investing as the path to generate passive income, look no further!

You may have wondered, 'how many properties do I need to retire comfortably?'

Here at REIF we understand that everyone comes with a different set of circumstances. Therefore, there's no clear cut answer.

However, when working with you we can help you to determine an answer by looking at your holistic wealth and retirement planning goals then taking a deep dive into your financial situation, with you.

Is property investment your only source of passive income?

One of the first matters that you’ll need to determine is whether you are going to have other investments or income producing assets working for you. If not, you may need to rely on several investment properties to support your retirement planning goals.

Other sources of passive income may include investments in stocks and company stocks.

How much do you need to live off each year?

In a blog we did some months ago, we explored how much you need per year to live a comfortable lifestyle. In that blog we identified that it was roughly $44,000 per person. So, if you’re a couple, it’s close to double that.

When we further explored these numbers, we looked at the aged pension. Every year, the average retiree receives half of this in pension funds ($22,375). This is also depending on if you’re receiving the government pension, too.

Retirement planning and superannuation

Did you know that the average super balance is $384,000 for males aged over 65? The balance for females of the same age is $313,000.

Shocking right!!!

That’s barely enough to last eight years. If you don’t have other savings or investments behind you, this figure becomes more alarming. This is especially considering the average life expectancy is 82 to 95. We won’t go too much into it in this blog, however if you want to read more about Australia’s self-funded retirement issue click this link.

So, how many investment properties is enough?

This is another factor that's dependant on how you decide to structure your investments. It’s also dependant on weekly rental income. If your rental income is less than your mortgage repayments, you can recoup this loss in tax. Most of our clients opt for the safer option where your rental income is more than repayments and then some.

Where your rental property is located can also affect your rental earnings. The higher your rental yield is, the more you can earn from your property.

The below figures are an estimate of the average rental earnings our property investors can expect after tax deductions are claimed, per investment property, every year.

Let’s first look at the average cash flow after repayments

On average, our clients make $5,200 in cash flow per year on each investment. That’s generally $100 per week on a high yielding property. However, we do have clients that can earn double this.

Additionally, depending on what you can claim in tax deductions with a good accountant, you may be able to receive $5,000 per investment property. This number is also reflective of each financial year. So, by the end of the financial year, on a very conservative example, a single investment property could produce you $10,200 in passive income.

The below table shows a conservative approach to earnings dependant on the number of investment properties.

Number of investment properties

Income each year





















Based on the demonstrated figures, it’s safe to conclude that a minimum of four investment properties will be enough to support your retirement plans. This is if property investment is you’re sole form of passive income.

See how many investment properties are enough to support you

If you wish to learn more about how many investment properties will be enough to support your retirement goals, reach out for a chat. Our finance and property specialists will be able to take a holistic approach to understanding what will work for you. Book to chat today on the details below.

Ph: 1300 130 932


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