Going Property fulltime?

Leigha,

The first question you have to ask yourself is how much income do you want.

If your answer is $120,000 before tax then you will need to generate the same through property.

Some quick basic calculations.

$120,000 = $2307 per week

If you buy some positive geared properties then lets say you make after costs $50 per week on each.

To achieve same income you would need about 46 of these properties. Now you may get some tax benefits due to travel, depreciation interest etc which will reduce your tax paybale on your $120,000.

You will have to ask Steve how to achieve this number of properties earning a passive income of $50 pw.

Then again keeping your income going for a few years and building a portfolio of growth properties may be your way to go.

Truthly though you have lots of options.

To achieve the income you want you would probably need about 10 high value properties unencumbered or as I said about 46 props positive geared.

My thoughts.

Petters

We are now up to seven properties and NO WAY able to stop working and live off the income generated.
I think property is a long term investment but certainly doesn’t generate huge cashlow, and definitely not enough to achieve a replacement on your current income, you need to think through very carefully as to how you could achieve this with property. Only, I think, if you have minimal debt left to pay.
eg two of my positive cash properties generate nett 40,000 per annum, aquisition cost, 525,000, 8% return, enough to cover interest and other minor costs.
my husband is also self employed in his own business and I get a very good income.
I think we all have this dream, but realistically there is no get rich quick scheme.
You also have to remember that we have had a huge property boom in the last few years, this may not continue.
Having said all that, there is only one regret, not starting investing at a young age, I was too busy travelling the world and enjoying my life, I didn’t even think of the future.