Looking for ways to grow create your own retirement fund?
- To have enough money to retire comfortably
- Wealth to pass along to my children
What kind of income do you want to have come retirement? Most teacher’s will earn an annual pension of $60K so let’s go with that amount.
Let’s assume the real estate investments will break even. You hold standard 25 year mortgages.
Real Estate Investment Properties
Assume you are buying a standard duplex for 300K anywhere in Canada. Similar properties provided an annual income of $15, 600 after expenses (taxes, property management, insurance, vacancy, repairs, accountant). Your mortgage payment will be paid off in 25 years.
How Many Real Estate Investments Do You Need?
$60K / $15, 600 = 3.85 Properties
Let’s round that up to 4 properties. $15, 600 times 4 properties = $62, 400.
Only 4 real estate investments and you’ve created a $62, 500 annual retirement income – not bad!
With 4 properties that merely break even you’ve built a healthy retirement income. An added bonus: at age 75 you will have 4 paid off real estate properties. Even if the properties show no increase in value after 25 years, you still have $900K of equity (4 x ($300k – 25% down payment).
*All content in this eBook is information of a general nature and does not address the circumstances of any particular individual or entity. Nothing in this eBook constitutes professional and/or financial advice, nor does any information constitute a comprehensive or complete statement of the matters discussed or the law relating thereto.