One of the most common questions we get asked is:
“How can I achieve $100,000 a year in passive income before the age of 40 and retire from my current job?”

It’s a powerful goal—and one that more Australians should be asking. In fact, we believe that with the right plan, anyone with a full-time income, even under $75K per year, can achieve financial freedom within 10 to 15 years using real estate as their vehicle.

At its core, this strategy involves investing in what we call “high-performance” properties—strategically selected assets that offer strong capital growth, high rental yields, and long-term scalability. When executed properly, this approach can replace your everyday income with consistent, reliable cash flow. Here's how it works.

What Does $100K in Passive Income Look Like?

To generate $100,000 per year in passive income via property, you’ll generally need an unencumbered portfolio somewhere between $1–2 million, depending on the rental yields of your properties.

For example, a $2 million debt-free portfolio returning 5% rent will earn you $100,000 annually. Alternatively, a $1.5 million portfolio at 7% yield or a $1 million portfolio at 10% yield can also get you there. These numbers reflect different property types and strategies—but all have one thing in common: They are debt-free.

Of course, you won’t start debt-free. In the early stages, the focus is on using leverage wisely to build an asset base, and paying down debt—or restructuring it—comes later.

Why Time is Your Greatest Asset

The biggest advantage real estate investors have on their side is time, through a combination of capital growth and rental increases.

Let’s say you purchase a $500,000 property today with a rental yield of 6%. That gives you $30,000 annually in rental income. If that property grows at around 10% per year (a conservative estimate in the high-growth markets we focus on), in 10 years it’s worth $1 million. Assuming annual rental increases of 7%, your rental income also doubles—to $60,000.

That’s a 12% return on your original purchase price from one property alone—and this doesn’t include additional purchases you can make by leveraging the equity your first property earns over time.

What If I’m on a $70K Salary?

You don’t need to be on a six-figure salary to make this possible. In fact, most of the clients we help start on full-time incomes of under $75,000, often with less than $30,000 in savings, or by using a guarantor to secure finance.

With a solid borrowing strategy and smart attention to cashflow, they’re able to begin purchasing high-yielding assets with built-in growth potential. For example, we’ve assisted clients in acquiring properties such as:

• A $376,000 home in a growth region producing 8.29% yield

• Annual income of ~$31,000 with estimated holding costs of 25%

• Net income after mortgage and expenses: ~$800 in cashflow positive territory

Even at today’s interest rates, this type of investment is self-sustaining—meaning it covers its own costs—and adds positive cashflow to your portfolio. As the property appreciates, both your net worth and borrowing power increase, allowing you to scale your portfolio faster over time.

Growing Your Portfolio Over Time

With a strong start and a clear strategy, most investors can go on to acquire multiple properties. For example:

• Year 1: Purchase your first property

• Year 2–3: Reassess borrowing capacity using equity + extra income

• Year 4–5: Add a second or third property

• Year 6–10: Portfolio grows, equity compounds, portfolios become positively geared

In a 10–15 year window, many clients are able to acquire four to six properties. These portfolios grow in value, and eventually, the strategy shifts to paying down debt.

A common approach is to sell one or two of the highest-performing assets to eliminate remaining debt on the rest. For example, two properties that have doubled to $1.5 million each can be sold, paying off loans across the rest of the portfolio. You’re then left with three or more debt-free properties, producing strong rental returns, and generating well over $100,000 in gross passive income annually.

What About Holding Costs?

It’s important to consider ongoing costs associated with investment property, such as property management fees, insurance, council rates, maintenance, and vacancy. These typically amount to around 25% of gross rental income, meaning if you want to earn $80,000 net passive income, you’ll generally aim for a gross income closer to $100,000.

But even when these costs are factored in, having high-growth, high-yield properties in your portfolio ensures your strategy becomes more profitable every year—especially as rents increase and debt decreases.

How Do I Get a Loan to Do This?

Getting started is usually the biggest hurdle—but not an impossible one. Most top-tier banks will lend around 6–7x your income if you have limited debts. Second and third-tier lenders may go as high as 10x income for the right buyers.

So, someone earning $70,000 could potentially borrow up to $700,000—enough to acquire their first investment property, grow their borrowing power, and start the journey of portfolio building with just one asset.

Each time you buy a well-performing property, your rental income increases, your equity grows, and your borrowing power improves. Over time, this compounds to the point where you can build sizable, cashflow-generating portfolios efficiently and strategically.

Paying Down Debt & Reaching Financial Freedom

In most strategies, debt is not an enemy—it’s simply a tool to help you grow faster. Once you’ve built the portfolio you’re happy with, the next step is consolidation.

Many clients follow this simple process:

1. Grow the portfolio with 4–6 properties over 10–15 years

2. Sell 1–2 high-growth properties after they've doubled or tripled

3. Use sale profits to eliminate debt on remaining properties

4. Enjoy $100K+ in gross passive income from debt-free, high-yield assets

This is a proven and repeatable process we help our clients with every day. It works—if you stick to the plan, focus on quality markets, and use time to your advantage.

Final Thoughts

We truly believe that any full-time working Australian has the opportunity to achieve full financial freedom within 10 to 15 years.

Using precise data, market research, strong returns, and responsible borrowing, it’s not uncommon for our clients to create $100,000 in annual passive income and a secure financial future.

High-performance property investment is not a get-rich-quick game—it’s a smart, strategic, and highly achievable path to wealth.

If you’re ready to get started or want to know what it would take based on your income and position, reach out to our team. Let’s build a game plan for you.