Retire Early Through Property

The reality check

Property can build serious wealth. But it is slow, requires discipline, and is not a shortcut. Anyone promising you will retire in 5 years with property is selling something. Here is what the numbers actually look like.

The compound growth model

Australian residential property has returned roughly 6–7% per annum on average over the last 30 years. That means a $500,000 property doubles in value approximately every 10–12 years. With leverage (a mortgage), your return on equity is magnified.

Example scenario

• Buy property 1 at $600,000 with 20% deposit ($120,000)
• At 6.5% annual growth, worth ~$1.12M after 10 years
• Equity growth: ~$520,000 on a $120,000 investment
• Use equity to acquire property 2
• Repeat over 20–25 years

The cashflow equation

You retire when your passive income covers your living expenses. For property, this means either:

• Debt-free rental income — Pay off mortgages, live off net rent
• Equity drawdown — Sell one or more properties, invest proceeds
• Combination — Some rentals for income, some equity for growth

Decision framework

• What annual passive income do I need to cover my lifestyle?
• How many properties (debt-free) would generate that income?
• What is my realistic timeline to acquire and pay down those properties?
• Can I maintain cashflow discipline for 15–25 years?
• Have I stress-tested against rate rises, vacancies, and maintenance costs?
• Am I diversified across markets, or concentrated in one area?

The bottom line

Early retirement through property is possible, but it requires a 15–25 year horizon, disciplined cashflow management, and data-driven suburb selection. Start with the numbers. Build the plan. Execute with patience.