Looking for ways to grow create your own retirement fund?
Goals:
- To have enough money to retire comfortably
- Wealth to pass along to my children
Assumptions:
Required Income
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.
Break Even
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.