Hey dear PCers, We are looking to achieve 100k+ passive income for early retirement through property investment. Me and my wife are in early 30s and currently rentvesting. We have 2 house PIs (Sydney Hill bought 2018 & Central Coast purchased early this year). Now our broker advised us the next property we are able to purchase cannot exceed 500k. So I am thinking below options: 1. Buy Now. Looking at areas where you will get neutral return at around~400k, e.g. houses in Christie beach SA / Thornlie WA or St Mary TH (lot of posters here so bullish on West Sydney) 2. Buy Commercial Property. Looks like there are still one out there with 8-9% return (which means ~40k net income, quite impressive) 3. Keep saving and wait till enough deposit to buy something in Sydney. Thanks guys. Looking forward to hearing your thoughts
Welcome Could you get a commercial property for $500k that throws off $40k income? what equity do you have, income coming in etc. There is not enough information provided to get much in the way of helpful answers.
Thanks Wylie. The equity is from Hill’s. Would be around 400k. Our total income is around 200k. yes the commercial property with that return would be in regional areas. The other day I saw one in hunters area Check out this property at 73 Vincent Street, Cessnock 2325 Sold Office at 73 Vincent Street, Cessnock, NSW 2325 - realcommercial
What's your current net position (not including your ppor) and how many years from now do you want to achieve that 100k passive income?
Hi Sackie, the net rental income is just slightly positive from two properties combined. Hill is negative but central coast one is getting strong rental income as there’s a granny flat in the back yard. I would be very happy to reach that point say 15-20 years time. thanks.
Glad to see you have a very realistic timeframe. You could even possibly exceed your goal in that timeframe.
Thanks Sackie. Keen to hear your thoughts on the next move if you were me. (I’ve listed some options above)
It really depends on your risk tolerance and overall financial situation. Assuming your risk tolerance is high moderate, I would either look at commercial real estate or an add value deal if you can identify value in a market. Possibly Brisbane.
