We all want the best for our families. Whether it’s security, opportunity, or a legacy to leave behind, there’s one investment strategy that stands out as the ultimate long-term move: owning an investment property for each family member.
But why? Isn’t owning one property enough?
Not quite. Here’s why investing in multiple properties is the smartest move to protect your family’s financial future, especially in today’s economic climate.
1. Property Prices Appreciate Over Time
Property markets are cyclical, but the long-term trend is clear: values go up. According to CoreLogic, national dwelling values have grown 382% over the past 30 years, with an average annual rise of 5.4%.
Let’s put that into perspective:
- A $500,000 property appreciating at 5.4% annually would grow to $2.3 million in 30 years.
- Now imagine owning three, four, or five such properties for each member of your family.
Inflation also works in your favor. As construction costs rise, so do the prices of existing homes. Your properties will appreciate in value, creating multi-generational wealth.
2. Rental Income Provides Consistent Cash Flow
Here’s where it gets interesting: while your properties grow in value, they also generate rental income.
Let’s break it down using recent data (CoreLogic, August 2024):
- Houses in Perth deliver a 4.9% yield with median weekly rents at $650.
- Units in NT produce a staggering 7.3% yield.
For a family, this means cash flow you can:
- Offset owner occupied mortgages and expenses.
- Reinvest into more properties or other income streams.
- Provide financial support for family members through education, life events, or retirement.
As rents increase over time (keeping pace with inflation), your income will steadily grow, further securing your family’s future.
3. Negative Gearing and Tax Benefits Work in Your Favor
Most people fear the phrase “negative gearing”, but in reality, it’s a powerful tool to boost your family’s wealth.
Here’s how it works:
- If rental income is less than property expenses, you make a “loss.”
- That loss can be claimed as a tax deduction, reducing your taxable income.
Combine this with property depreciation—where you claim the wear and tear on a building’s structure and assets—and the tax benefits become substantial.
Over time, as rental income increases, negative gearing naturally turns positive, further accelerating your wealth-building strategy.
4. Retiring Comfortably is Expensive—More Properties Make it Achievable
The Association of Superannuation Funds of Australia (ASFA) paints a sobering picture of retirement:
- Singles need $52,085 per year for a comfortable retirement.
- Couples need $73,337 per year.
To achieve this, ASFA estimates you need:
- $595,000 in savings for singles.
- $690,000 for couples.
But here’s the kicker: most Australians won’t get there with just one investment property.
One rental income stream might cover part of your needs, but multiple properties create a reliable, diversified income source. When you own an investment property for each family member, you multiply these income streams, ensuring your loved ones are set up for financial independence.
5. Owning Properties Shields Your Family from Inflation
Inflation eats away at savings and wages—but it’s a friend to property investors.
Here’s why:
- Inflation increases construction and material costs, driving property values higher.
- Landlords can raise rental prices to keep up with inflation, ensuring cash flow grows over time.
The Reserve Bank of Australia (RBA) warns that inflation particularly impacts low-income earners. By owning multiple properties, you hedge against this challenge and create a buffer for your family.
6. Housing Supply Issues Will Drive Future Demand
Housing supply and demand trends are key drivers of property value. According to recent supply data:
- Australia faced a 200,000-dwelling shortfall before the mid-2010s.
- While some cities (Sydney, Melbourne) saw temporary oversupply in 2021-2022, demand is rebounding.
In cities like Adelaide and Perth, undersupply will continue to push values higher post-2022.
For families investing in property, this imbalance means one thing:
More demand + Limited supply = Higher rents and capital growth.
By securing properties for your family members today, you’re positioning them to benefit from these trends in the years ahead.
7. Creating a Legacy of Generational Wealth
Most Australians stop at one investment property—and that’s where they fall short. According to the ATO:
- 20% of Australians own an investment property.
- But 73% stop at one property.
Here’s the reality: owning just one property won’t provide enough income for retirement, let alone build generational wealth.
By acquiring an investment property for each family member, you’re setting a foundation for:
- Passive income streams to support their life goals.
- Long-term assets that can be passed down.
- A family legacy of financial security and opportunity.
The Smartest Play? Start Now
Here’s the bottom line: the smartest way to secure your family’s financial future is to own an investment property for each family member.
- Property appreciates in value.
- Rents provide consistent income.
- Tax benefits accelerate your wealth-building.
- Inflation and supply-demand dynamics push values even higher.
Owning multiple properties isn’t about extravagance—it’s about planning for the long term.
The sooner you start, the better off your family will be.
So ask yourself: What kind of future do you want to create for your loved ones?
The answer lies in real estate.