Retiring with Multiple Investment Properties
If you live in Australia, there’s a good chance you’ve caught the property bug.
For many, the dream is straightforward: buy one investment property, then another, then another… let capital growth do the heavy lifting, and trust that “future you” will be set. But what happens when the future arrives—you’re in your 50s, you’ve built the portfolio—and yet you still feel broke?
This case study shares a scenario based on real client experiences (anonymised and generalised), where a structured strategy helped a couple shift from being asset rich and cashflow poor to having a more sustainable path toward retirement.
Disclaimer: The information provided is general in nature and does not consider your specific financial objectives, situation, or needs. Always seek advice from a qualified professional before making financial decisions.
The Situation: Wealth on Paper, Pressure in Reality
The couple presented with the following profile:
Mid-50s, both still working
Combined income: $220,000
Primary residence: fully owned
Eight investment properties: total estimated value of $7–$7.5 million
Loans: approx. $3 million across the portfolio
Super balances: ~$400,000 each
Despite a net wealth exceeding $5 million, two key issues were affecting their financial wellbeing:
Tight cashflow: Rising interest rates, P&I repayments, strata fees, insurance, land tax, and maintenance costs were placing pressure on their monthly budget.
Low liquidity: Most of their wealth was tied up in property, with limited access to liquid funds in case of emergencies.
Although they had followed common investment strategies, they were unsure whether they were actually on track to retire—and when that might be feasible.
Step 1: Look at the Full Financial Picture
They had consulted various professionals—mortgage brokers, accountants, property managers—but none had offered a comprehensive view. The first step was building a complete financial plan.
Some of the key considerations included:
Reviewing their superannuation structures to ensure alignment with retirement timelines and risk profiles.
Evaluating net returns on each property after all expenses (including land tax, strata, and interest costs).
Assessing the lifestyle they wanted in retirement, and the income required to support it.
It was essential to review the appropriateness of their superannuation arrangements before making any contributions, ensuring they aligned with longer-term retirement goals.
Step 2: Define the Objective – Breathing Space and a Timeline
When asked, “Could you retire at 60 or 65?”, the couple weren’t sure. But when asked, “Would you retire earlier if it were viable?”, their response was immediate: yes.
Their emerging goals were:
Improved cashflow in the short term
Clarity around a target retirement age
Reduced anxiety around property costs, interest rates, and tenant issues
Holding all eight properties indefinitely was no longer aligned with their lifestyle aspirations.
Step 3: A Strategic Sales Plan (Not Reactive)
A key insight was realising that retaining all eight properties wasn’t necessary to meet their retirement objectives.
Together, a three-year staged strategy was developed, focused on selling one property per year. This avoided potential fire sales and gave flexibility to select which assets to release.
Key selection factors included:
Properties with high maintenance needs or lower yields
Emotional attachments or tenancy issues
Capital gains opportunities that could be managed strategically
Proceeds were directed toward:
Debt reduction
Boosting liquidity
Superannuation contributions, where eligible (e.g., using carry-forward concessional contributions under the < $500k balance threshold)
Importantly, the use of any superannuation contribution strategy was assessed against the client’s capacity, time horizon, and tax position. All contributions remained within the concessional caps as legislated.
Step 4: Quietly Reducing Risk
Beyond improving monthly cashflow, the strategy helped manage overall risk exposure.
By reducing the number of properties and associated loans, they were:
Less exposed to interest rate volatility
Less reliant on full tenancy across all properties
Better positioned to meet ongoing loan obligations
Less vulnerable to costly repairs or large land tax bills
This shift also aligned with best-interest advice obligations to consider simplification and risk mitigation as clients approach retirement.
Step 5: Creating a Retirement Pathway
Initial assumptions had the couple working into their 60s. After restructuring, it became feasible for them to consider transitioning to retirement closer to age 58.
The drivers of this change included:
Reduced overall debt
Superannuation balances growing through contributions and compounding returns
Improved net rental income, due to lower loan servicing costs
The couple now had greater flexibility, annual review checkpoints, and a forward-looking view of their options.
Note: Projections are a tool used in retirement planning but must be based on conservative, licensee-approved assumptions.
Key Considerations for Property-Focused Investors Approaching Retirement
If you’re in your 50s or 60s and hold multiple properties, consider these general lessons:
Asset-rich ≠ cashflow-comfortable: Property wealth may not equate to financial flexibility.
Debt that built wealth may now limit options: Consider transitioning from growth to income and security.
Strategic sales can improve outcomes: You don’t have to sell everything—just the right things at the right time.
Super matters: Structured contributions (particularly using carry-forward rules) can help boost tax-effective retirement savings.
Liquidity is key: Life is unpredictable. Accessible funds reduce financial stress.
A plan creates peace of mind: Knowing what to do—and when—brings clarity.
Thinking of Reviewing Your Own Retirement Strategy?
If you’re wondering:
“Are we on track to retire?”
“Should we sell a property?”
“How can we turn our portfolio into retirement income?”
Working with a financial planner can help you step back, view the whole picture, and weigh up options that balance property, superannuation, and lifestyle goals.
Note: Any strategy involving investment, debt, or super contributions should be tailored to your situation. Advice must be documented via an SoA or RoA where appropriate, and all assumptions must be supported by compliant record keeping and reasonable inquiries.
Disclaimer: The information contained in this blog is general in nature and does not constitute financial advice. It does not consider your personal objectives, financial situation or needs. Before acting on any information, please consider its appropriateness and seek advice from a licensed financial adviser.