Owning just one investment property may not be enough to retire in comfort, The Daily Telegraph reports.
But there are ways to work out what will deliver the property wealth you’ll need.
Property Investment Professionals of Australia chairman, Peter Koulizos, tells the newspaper “it all depends on what ‘retiring comfortably’ means to you.”
Mr Koulizos says people shouldn’t expect to live off one property’s rent because a big chunk of the income goes back into repairs, maintenance and property management fees.
“To earn $100,000 of rental income you need the equivalent of about $2.5 million in property freehold,” he says.
Instead, Mr Koulizos says investors should start early, buy in a good location with strong capital growth potential, pay it off and be patient.
He says most people are wage earners and will also have superannuation at retirement.
“For me, super will pay for the necessities and property will pay for the niceties.”
Source: The Daily Telegraph.
