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Do property investors need to know their number?

Do property investors need to know their number?

by Cameron Micallef | March 18, 2020 | 1 minute read

The majority of property investors begin their journey as a way to earn a passive income in retirement, with a set number in mind to achieve this outcome.

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March 18, 2020

During a recent recording of The Smart Property Investment Show, host Phil Tarrant and property investor Tina Tower discussed whether it is important to have an end number in mind when investing.

Ms Tower said the importance of a number for her was to make sure she could live happily ever after, having gone through stages of being flat broke.

“My goal is always to get $500,000 a year passive income, which I’m nowhere near. So yeah, I’ve still got a long way to go. That’s my number,” Ms Tower said.

Host Phil Tarrant offered a slightly different sentiment, noting that as a property investor his number is constantly changing.

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“I don’t actually have a number. Investors seem to associate a level of happiness with a level of income to promote happiness. But what makes people happy changes over time,” Mr Tarrant said.

“I don’t think, I don’t associate [money] so much with happiness. I was happy with a lot less than what I have now. It’s just the things that allow you to do day to day, which is fun,” Ms Tower said.

Ms Tower also shared with listeners her simple strategy to get a foothold on the property ladder while she was starting out her journey.

“I had a simple property investment strategy of if the rent covered the insurance, the rights and the mortgage, I was in. That was fine. That’s all I needed because I didn’t earn enough money to kind of support negative gearing,” Ms Tower said.

About the author

Cameron Micallef

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

Do property investors need to know their number?
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