How many properties to be financially free?
- Thread starter caryn
- Start date
Wouldn't that depend on their individual value, available equity not to mention the circumstances, objectives and desired lifestyle of the individual?
Could be anywhere from one $1.5m house with $1m equity to 3 $300k houses with no debt. Higher or lower or somewhere in between.
Could be anywhere from one $1.5m house with $1m equity to 3 $300k houses with no debt. Higher or lower or somewhere in between.
It would depend on the cashflow you receive from them! No point in having 100 properties if your cashflow is only a few dollars per week per property - 'tis better to have, for example, only 8 IPs throwing off $15K per annum each.
IMHO, it comes down to the fact that it's your income that makes you financially free ..... the number of properties you own doesn't necessarily do so.
Cheers
LynnH
IMHO, it comes down to the fact that it's your income that makes you financially free ..... the number of properties you own doesn't necessarily do so.
Cheers
LynnH
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One persons financially free is 20 k a year, anothers is 100 k a month
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rolf
One persons financially free is 20 k a year, anothers is 100 k a month
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rolf
Well it depends on your strategy.
For example if your strategy is cashflow and you need say 50k pa in income - you maybe able to do this with little as 8-10 properties.
If you strategy is LOE ( Line of Equity) then you may need a asset base of say $2-2.5M spread around the country (for diversification) and assuming a growth rate of say 4-5% pa then you would earn your 50k.
The beast way to work it out is get calculate what you need in terms of income, agree the strategy and then develop a plan of when you can achive this based on your "risk appetite".
Best of luck!
For example if your strategy is cashflow and you need say 50k pa in income - you maybe able to do this with little as 8-10 properties.
If you strategy is LOE ( Line of Equity) then you may need a asset base of say $2-2.5M spread around the country (for diversification) and assuming a growth rate of say 4-5% pa then you would earn your 50k.
The beast way to work it out is get calculate what you need in terms of income, agree the strategy and then develop a plan of when you can achive this based on your "risk appetite".
Best of luck!
14.2
Approximately...
Approximately...
I would never consider "property" as an essential part of financial freedom anyway.
If I were 20 years younger, knowing what I know now, my goal would be to have sold my last property within a few years of retirement and have an open mind about selling my PPOR. Why would you want the hassles of owning rental property? (I don't know enough about commercial to comment).
If I were 20 years younger, knowing what I know now, my goal would be to have sold my last property within a few years of retirement and have an open mind about selling my PPOR. Why would you want the hassles of owning rental property? (I don't know enough about commercial to comment).
yes there are many variables as mentioned but i guess you want just a few rough ideas.
For me 4 100% owned properties returning the average rent would put me on a good wage. Not what im on now but at that stage its about enjoying your wealth not creating more so a drop in income would not be noticable.
Add another for outgoing costs puts me at 5 fully owned properties. I plan to aquire around 10 over the next 20 years. Sell a few near the end to pay off the remaining and i should be set for a slow down around the age of 50. retiring does not interest me. Just selecting bits of work as i see fit. This is achievable and even if i only make it 50% of the way. I will still be in a very good position. This is the plan anyway.
I disagree....13.82 if you want to do it a bit tight...
Great way of putting it... Even if you get to 50% of your goal you will still be much better off than doing nothing at all.
If you look at it like that, then why not dream bigger?
i'll take no debt - god or bad, and enough cash to pay for food and entertainment coming from other people's contracted financial commitments.
For me and my family 3 IP's and a PPOR. All 3bedder's in canberra - bringing in $350-$450 p/w in rent, with no debt against them. And of course no debt, against the PPOR either.
Of course that isn't just financial indepence, but nice comfortable lifestyle with travel and education for my children.
Of course that isn't just financial indepence, but nice comfortable lifestyle with travel and education for my children.
For me, the question is more "How much money do I need to live comfortably and happily?", and then work backwards from there.
You might also be better off working on the basis of $$$$s invested, rather than an actual number of properties.
Cheers,
Harriet
ditto .......................
