How many properties do you need to retire? | Property Minute with Ahmad Imam [video]

How many properties do you need to be financially independent?

The potential answers are:

Retirea) 3
b) 4
c) 5
d) 6
e) 7

If you answered either A or B you are incorrect.

If you answer D or E you are also incorrect.

But if you answered C then congratulations — you are wrong also.

It’s a trick question.

It’s not about the number of properties you have in your portfolio.

Wealth Retreat 2018 - General
It’s about the quality of the property you have.

And that means it’s not about the number of properties you have but the size and value of the assets in your portfolio that is most important.

I could tell you I’ve got ten properties that are worth $100,000 each one with the total value $1 million or I can tell you I have 10 properties that are worth $1 million each one with the total value $10 million.

The propositions are entirely different.

5retirement DethA classic example of this is the Forbes Rich List.

In list such as this they’re talking about people’s net worth.

That’s the most important thing.

Your net worth is calculated by taking the total value of your assets and subtracting your liabilities.

Value is what is most important.

So when you hear that you need to buy ten properties in ten years or five properties to retire – that’s rubbish.

Your level of financial freedom really doesn’t have anything to do with the number of assets you own.

icon-podcast-large

Subscribe & don’t miss a single episode of Michael Yardney’s podcast

Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.

Need help listening to Michael Yardney’s podcast from your phone or tablet?

We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.

icon-email-large

Prefer to subscribe via email?

Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.


Ahmad Imam

About

Ahmad is Director of Metropole Properties Sydney and a highly skilled wealth strategist. He is a passionate property investor, has a degree in Commerce, is a licensed estate agent and qualified property investment advisor and has personally coached and educated hundreds of clients to create wealth through property.
Visit www.SydneyBuyersAgent.com.au


'How many properties do you need to retire? | Property Minute with Ahmad Imam [video]' have 3 comments

    Avatar

    May 5, 2019 Alex

    G’day Ahmad, with all my respect, you are very wrong when saying that the sheer value of the portfolio is the main success indicator. You can hardly find an investor with portfolio of 10 properties worth less than $100K each. But even if you can, this portfolio can be much better off than the portfolio of ten properties worth $1M each. You see, if the portfolio of $10M is loosing 10% value every year and each of $1M property has 1-2% rental yield, you’d be loosing money faster than your new phone does. If the portfolio of 10 properties worth $1M grows by 15% a year, and it has a huge potential to add value to it, and it has 6-7% rental yield I’d rather be in that seat rather than watching the $10M portfolio loosing $1M each year while dealing with huge cash flow problems on top.

    Reply

      Avatar

      May 5, 2019 Angelo

      Losing!!!….ffs

      Reply

      Ahmad Imam

      May 5, 2019 Ahmad Imam

      Hi Alex, thank you very much for your feedback. I certainly see your point and you’re absolutely correct. Performance of the portfolio is the most important metric.

      If you refer to my video I mentioned that what is most important is the size and value of you’re asset base and the QUALITY of assets within your portfolio.

      When I say quality, I am referring to the asset being investment grade I.e a property that is both strong in that it has wealth building rates of growth and stable. QUALITY and performance of the property is of course front of mind.

      Again I appreciate your feedback, but with all due respect, please refer back to the video and you will find that this point was covered off.

      Have a lovely day.

      Reply


Would you like to share your thoughts?

Your email address will not be published.
CAPTCHA Image

*


facebook
twitter
email