Own $2 million of property – and still fall short of your retirement income goal?

The other day I was speaking to some friends, who are selling a property in the Eastern suburbs of Melbourne for about $2 million.

It’s currently being rented out to an executive type family.

The reason they are selling is the yield is very low – and they want to get a better income for their retirement lifestyle.

So, they are selling it, and buying two Melbourne units or a townhouse in its place.

However, while that will be a cashflow improvement – it’s not a magic bullet either.

You see, because prices have risen so much in many areas of Melbourne…2 townhouses or units of say $1 million each….might only rent for $1,000 per week in total.

Then you’ve got property management and upkeep costs.

You might only be looking at keeping $900 per week of income.

That’s not a great return of $2 million of debt free property.

So, what’s the solution?

Well, one option worth considering is commercial property.

Here’s why.

Take this example of 2 properties owned by Helen Tarrant –  both valued at around $590,000.

 

 

 

As you can see, the commercial property gives her $490 per week net passive income, while the residential one gives her $59 per week net passive income

(In both cases this means money in her pocket after loan repayments etc. but before tax).

That means the commercial property is paying her over 7 times more passive income.

This is how she’s able to earn over $871 per day of net positive cashflow from her portfolio.

If you think it could help you to add one of these cash-cow properties to your retirement mix, come and meet Helen at her new event.

 

 

How to get up to 7x more positive cashflow – New free event – Real Estate Cashflow Made Easy – Click here

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