Ajay Ahuja Blog on Retirement Income and Property

Don’t worry I am not but you should always know what retirement income you need to live.  Why?  Well this should be your target you aim towards when you invest.

Now I am going to make a prediction about you and I know I will be wrong but bear with me:

You want a retirement income of £100,000 per year.

Now I am probably wrong as I hope you want more but lets just say you would be mildly pleased with this outcome.  So how do you go about building it?

Its simple.

  1. A well bought property can bring you in £200 per month positive cashflow every month.  That’s £2,400 per year.  Divide £100,000 by £2,400 and you get 42 properties.
  2. To buy such a property requires around £5,000 to cover you for initial set up costs, working capital and sundry costs.
  3. 42 x £5,000 = £210,000.  This is what you have to raise to build this cashflow positive portfolio.
  4. Beg, steal and borrow to raise this £210,000 as quickly as you can.
  5. Invest in cashflow positive properties.

If you can raise £210,000 right now then you can retire.  If you can raise around £21,000 per year then you can retire in 10 years.

So its up to you.  You need to ask yourself 3 questions:

  1. What is my target retirement income?
  2. How quickly can you raise the initial funds?
  3. Are you up for the challenge?

If you need help, take read of some of my advice books.

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