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How many rental properties do you need to retire comfortably?

Updated: Aug 17, 2022

A smart property investment strategy can help you achieve financial freedom sooner. So, how many properties do you need to retire comfortably?

You might be wondering, 'how many properties do I need to retire comfortably?'

At Real Estate Investment Finance we work with clients who come from different backgrounds. So, there's no clear cut answer to this question. However, we work with our clients to map out a wealth creation strategy based on each client's individual financial circumstances and goals.

Is property investment your only means of wealth creation?

One of the first matters that you’ll need to determine is whether you're going to have other investments or income producing assets working for you. If not, you may need to consider several investment properties within your wealth creation strategy.

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

How much money 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 figures (listed below) are an estimate of the average rental earnings smart 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 you need in your wealth creation strategy, reach out for a chat. Our contact details are listed below.

Ph: 1300 130 932


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