How A Retired Couple Built A $150,000 A Year Income From One Property

A couple sold their business, sold down their property portfolio, and were sitting on roughly $2.5 million in cash with no income. Today one commercial asset pays them around $150,000 a year and they still have money in the offset.

In this video I break down the framework underneath that outcome. Every property investor goes through three phases: acquisition, where you buy growth. Optimisation, where you stop buying and start improving what you own. And consolidation, where you sell down growth and buy income. Almost all property content is about phase one. Almost nobody plans for phase three, and that's where retirements get made or broken.I go through the maths most people never do before they retire. At national gross residential yields around 3.5 percent, before costs, producing the ASFA comfortable couple standard of roughly $78,500 a year from unmortgaged residential property takes somewhere near $2.7 to $3.1 million of property owned outright. That's about three median priced Australian homes with no mortgage.

Then the deal itself: an industrial asset on an acre close to the city, a 17 year lease, financed on a lease doc loan assessed on the tenant's rent instead of their income. And the three decisions inside it that mattered, which had almost nothing to do with the building.

I also cover what they gave up. Liquidity, concentration into a single tenant, and what the 1 July 2027 CGT changes mean for the exit.

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‍General information only. Not financial, tax or legal advice. Real client example, results vary.