Cashing in On Capital Growth: Using Property to Get Ahead

Investing in property is a long-term game. Commitment to going the distance with your property portfolio can help you build wealth and relax into retirement. If you’re in your 30s and wondering how you’re ever going to bridge the gap between renting and retirement, the answer is property. It pays to be patient, with the average property value doubling every 8.6 years, so you’ll need to focus on the future to reap the rewards.

The Investment Impetus

There’s a big gap to close between your working life and your retirement years, and relying only on your PAYG and superannuation will leave you with a debt deficit. In our experience, a property portfolio provides the foundation to build the future wealth you need to fund a comfortable retirement.

Investment properties work to build your capital wealth, giving you the option to enjoy a passive income through rent or take advantage of capital growth by selling.

Property Plusses

If you’re contemplating a comfortable retirement, you’ll need to supplement your superannuation with an investment strategy. Property has more paths to profit than other assets, through rental returns and future price growth.

You also have the flexibility to add value through renovations or extensions. Adding value to your investment property has the potential to generate a greater passive income which can help you fund future investments.

Take the Plunge

Before you take the property plunge, work backwards to understand what it is you want from your retirement and how property can help you get there. You might plan to retire sooner and therefore need to invest more aggressively, or you might be satisfied with a simpler solution that lets you work longer.

It’s a matter of aligning your personal preference with professional advice and smart strategy.

Property Number 1 2 3 Total
Purchase Age


Purchase Price


Cost of Purchase





























Loans 340,000 467,500 595,000 $1,402,500


Property value at Retirement  








Net Equity (less loans) 1,243,704 1,076,237 797,852 $3,117,793
Rents  55,430 54,031 48,750 $158,210
 Net Passive Income  38,429 30,655  18,999   $88,085

Do the Math

If you’re currently in your 30s, you’ve likely got about 40 more years of working life ahead of you. From an investment perspective, that’s a lifetime to create opportunity.

Generally speaking, if you’ve got the equity available and the ability to service a loan, you can add additional properties to your portfolio every five to seven years.

We’ve put together a chart showing how adding three investment properties can give you a retirement balance of over $3 million.


We have assumed retirement age is 70.

Deposits are always 10%, plus 5% closing costs and government charges.

The long-term weighted average annual growth of attached dwellings in capital cities is 4.52%.

We have used a net rental yield of 3.5% that is net of management fees.

Net Passive Income is rent less interest costs.

The Low Down

 The bottom line is that most working Australians will earn between $2-3m over their working lifetime but the average superannuation balance for those nearing retirement is only around $200,000. With populations living longer, the majority of Australians will be left with a super deficit and little funds to retire comfortably, leaving them reliant on the government pension.

With the right plan, you can wind up on a net passive income of $88,000 from just three investment properties purchased at 10-year intervals. This is double the current government age pension allowance.

It sounds dire, but it doesn’t have to be that way. Every day you wake up and leave the house, you choose how you spend your disposable income. What may seem like pocket change now can make a huge difference in the long run. Every day that you’re not actively planning for your future is time lost, so instead of investing in the now, focus on further down the track.

Future proofing your finances isn’t just about living the high life later, it’s about leaving a legacy that can help the next generation build wealth, get an education and break through the property affordability barrier.

We’re not saying scrimp and save, we’re saying the choice is yours, so choose wisely.