One family, three futures
Lilly (44) and William (42) Harper own 4 rental properties, in Melbourne, Brisbane, Manchester and Dubai, and want $150k a year of passive income.
A worked example: one illustrative household, Base scenario, assumptions dated July 2026.
The household
- Lilly 44 and William 42, living in Australia.
- 4 rental properties in 3 countries: Melbourne, Brisbane, Manchester and Dubai. 1 already sold, in Hobart.
- Shares in 2 currencies.
- 2 retirement funds, locked until 2042 and 2044.
- Combined debt $3.0M.
- Target: $150k a year of passive income, adjusted for inflation, and a net worth of $6.5M.
Keep all 4 properties
No sales, no purchases.
The properties' cashflow after tax stays under the goal line until the first retirement fund opens in 2042.
Goal year 2042: the baseline. Owned by 2046: $11.0M, adjusted for inflation, the baseline.
Sell Melbourne and Manchester in 2029
2029: the Melbourne apartment and the Manchester flat are sold, and the money goes to the loans.
In 2029, $63k a year comes from the 2 remaining properties and $91k from a 4% draw on the cash left over. Fewer properties keep growing.
Goal year 2029: 13 years earlier than keeping everything. Owned by 2046: $10.0M, adjusted for inflation, $931k less than keeping everything.
Sell the same 2, buy off the plan in Dubai
2027: a second Dubai apartment is booked, AED2.2M paid from cash in stages. 2029: the 2 are sold and the apartment is handed over.
Income in 2029 is close to selling alone. From 2030 the new apartment's rent and growth add up, so they own the most of the three.
Goal year 2029: the same year as selling 2. Owned by 2046: $11.2M, adjusted for inflation, $225k more than keeping everything.
Keeping everything reaches the goal in 2042, selling 2 in 2029, and selling 2 then buying off the plan in 2029.
The decision
The Melbourne apartment carries their largest loan. Whether to sell it, and what else to sell, is not a question on its own. It depends on what the household is optimising for, and the search runs every path against each of these:
- Reach the passive income goal soonestThe first year income after tax covers the target, and keeps covering it.
- Reach the net worth target firstGrowing the balance sheet before converting it into income.
- The most cashflow while net worth still growsIncome that rises with inflation year after year, not a one off spike.
- The largest legacy for the childrenWhat is left at the end of the plan, after every tax and every cost.
Value growth 4.5%, rent growth 3.0%, loan rate 6.24%, inflation 3.0%, drawdown rule 4%, as at July 2026.
Passive income after tax against the target, the Combined Assets rule, retirement funds counted from their access year.
A worked example on one illustrative household. An illustration, not advice; a licensed professional is the person to decide with.
See the three futures charted on the home page