My Property Investment Tip #27

My Property Investment Tip #27
How Many Properties Do You Need To Retire?
Now this is the real Tip #27!
Thanks to everyone who replied to yesterday’s question. Loving the feedback, and I’m glad everyone is getting value from these tips.
So how many properties do you need to retire?
The answer is 5. …well depending on how comfortably you want to retire.
Did you know that the average Australian, on the average wage, pays an average of 25% of their wage towards rent? Sounds about right doesn’t it?
So therefore, if you had four properties paid off, and were receiving rent on each of them, you would have 4 x 25% of an average wage, which of course equals 100%, or one wage.
And that wage would be paid to you forever. Even INCREASING as you get older, as rents rise over the years. Unlike your superannuation (which you cannibalise down to zero at your expected life expectancy), with your rental income, you can live as long as you like. And when you do pass away, you can leave that income to your kids. Or if you don’t like them, me ?.
But wait… we still need one more property! Why?
Well, because even when a property is paid off, it will still incur some bills, like council rates, water charges, insurance, and maintenance costs.
So we need a fifth property bringing in another 25% of an average wage to give us a total 125% gross, which then equals about 100% net when the bills are paid.
So then, grow your portfolio until you get to the number of properties you want, then focus on paying them off.
Or maybe not ?
Stay tuned for my next few tips which will focus on how to pay off your loans FAST.
– Daimo

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Daimien Patterson is the CEO of Integrity Property Investment, a property investment company based in Australia. He regularly produces books, blogs and videos on the topic of property investing, helping thousands of people create financial security and freedom through education and property investment. Get started today.  

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Legal Disclaimer: This information ('the information') is presented for illustrative and educational purposes only. It is not presented nor should it be treated as real estate advice, legal advice, investment advice, or tax advice. All investments involve risk and potential loss of money. If you require advice in any of these fields you should contact a suitably qualified professional to assist and advise you. Your personal individual financial circumstances must be taken into account before you make any investment decision. We urge you to do this in conjunction with a suitably qualified professional. Daimien Patterson, IntegrityX Enterprises Pty Ltd, and their associated trading names, companies, researchers, authorised distributors and licensees, employees and speakers do not guarantee your past, present or future investment results whether based on this information or otherwise. Daimien Patterson, IntegrityX Enterprises Pty Ltd and their associated trading names, companies, researchers, authorised distributors and licensees, employees and speakers disclaim all liability for your purchase decisions. You should do your own independent due diligence and seek the advice of qualified advisors before making any investment decision.