How Many Investment Properties Is “Enough”?
After the first investment property, the question usually becomes quieter, and more serious:
How many properties do I actually need before things start to feel different?
Not emotionally.
But financially, and psychologically.
The Lens We Used
This analysis was done deliberately from a plain PAYG perspective:
- Ordinary salaried income
- No “financial influencer” scenarios
- Long-term, normal, repeatable assumptions only
- The goal was not to prove a point — but to reduce anxiety by understanding what the numbers actually do over time.
The Assumptions (Conservative)
To keep things simple and realistic, we assumed:
- Purchase price per property: $700,000
- Initial cash required (deposit + costs): ~$175,000 per property
- Long-term capital growth: 6.5% p.a.
- Inflation (CPI): 3% p.a.
- Lending structure: Interest-only
- Sale outcomes include tax and selling costs
No optimistic or pessimistic scenarios.
Just long-term averages
Scenario Results
Scenario 1 – Buy 1 property, sell after 10 years
- Initial cash: $175k
- Cash after sale: ~$590k
- Properties owned: 0
- Passive income: $0
This is a successful investment
But it does not materially change lifestyle or income security.
Scenario 2 – Buy 2 properties, sell 1 after 10 years
- Properties remaining: 1 (debt-free)
- Property value: ~$1.3m
- Net passive income: ~$46k per year
- In today’s dollars: ~$34k per year
This is where property starts to “help”, but the income is still not enough to fully support life.
Scenario 3 – Buy 3 properties, sell 1 after 15 years
- Properties remaining: 2 (fully owned)
- Total value: ~$3.6m
- Net passive income: ~$126k per year
- In today’s dollars: ~$80k per year
This is where real choice begins.
Not retirement, but flexibility.
Scenario 4 – Buy 4 properties, sell 1 after 20 years
- Properties remaining: 3 (debt-free)
- Total value: ~$7.4m
- Net passive income: ~$260k per year
- In today’s dollars: ~$140k per year
This is not sudden wealth.
But it significantly reduces fear of job loss, disruption, or uncertainty.
The Insight That Changed Our Thinking
Earlier in our own journey, the goal was: “Reach financial freedom as fast as possible.”
With time, a different realisation emerged: For most people, even when financially independent, they still want to work, just with more choice.
From that lens, there is such a thing as buying “enough”.
A Question to Leave You With
If you look 10–20 years ahead:
How many $700k properties would be “enough” for you?