How to Build a $100k Passive Income Through Property Investment
- Ryan Smith
- 3 hours ago
- 6 min read
A step-by-step guide for everyday Kiwis to turn home equity into long-term wealth and retirement freedom. Learn how to grow your passive income through long-term property investment.
For many Kiwis, the idea of retiring with a $100,000 passive income feels like a distant dream. But with the right strategy, the right tools, and a clear plan, it’s not only possible, it’s achievable for most.
At Thrive Investment Partners, we help everyday New Zealanders turn their home equity and KiwiSaver into structured investment plans that build long-term wealth.
We’ve created a framework that shows exactly how many properties you need to reach a $100k passive income through property investment, and what steps to take to get there.
Why Most Kiwis Struggle to Get Started
The typical Thrive client isn’t a seasoned investor. They’re hardworking mums and dads who own their home, contribute to KiwiSaver, and want to secure their future, but they don’t know how.
They’re not looking for quick wins or speculative flips. They want a plan. And that’s where Thrive comes in.
Most Kiwis rely on KiwiSaver and the NZ Superannuation to fund their retirement. But the numbers tell a sobering story. The average KiwiSaver balance at retirement is just $69,104.
And even for those in their 40s or 50s who’ve contributed consistently, the projected balance at age 65 is around $165,000.
That translates to just $7,108 per year in retirement income. Add NZ Super at $26,345, and you’re still only at $33,453 annually - far short of the lifestyle most people hope for.
So what happens if you don’t invest?
You keep working. You rely on one income stream. You hope things work out. But hope isn’t a strategy, and that’s why property investment, when done right, can change everything.
Why Property Makes Sense
Property is unique among asset classes. It’s tangible, scalable, and, most importantly, it allows for leverage. With shares or term deposits, you invest what you have. With property, you can use your existing equity to borrow and buy assets worth far more than your initial outlay.
Consider this: if you invest $100,000 in a share fund returning 7%, you’ll earn $7,000 in a year. That's a healthy return.
But, if you use that same $100,000 as a deposit, you could leverage your way to buy an investment property worth $500,000. If that property grows by just 5%, your capital gain is $25,000.
That’s 3.5x more, and you still own the full $500,000 asset.
This leverage is what makes property such a powerful tool for building passive income. It’s not just about buying one house; it’s about using your existing resources to build a portfolio that works for you.
Two Strategies to Reach $100k Passive Income
Before you start investing, you need a goal. In this case, we’re targeting $100,000 in passive income by age 65. From there, you can choose one of two strategies:
Capital + Income
This approach assumes you’ll consume both the income generated by your assets and a portion of the capital itself. It requires less total capital but means your asset base will shrink over time.
Income-Only Strategy
Here, you live solely off the returns, rental income, interest, or dividends, without touching the capital. It’s more conservative and preserves your wealth, but it requires a larger asset base upfront.
Both strategies are valid, and the right one depends on your age, goals, and appetite for risk. But either way, the key is to start with a clear target and build backwards from there.
Case Study 1: Mark & Leanne
Mark and Leanne are a couple in their late 40s, earning a combined $170,000. They own their home, valued at $740,000, with a $156,200 mortgage.
Outside of KiwiSaver, they had no other investments, but they had a clear goal: retire comfortably, support their children, and avoid working into their later years.
Using Thrive’s planning tools, we mapped out their retirement projection and identified a shortfall. Based on their age and goal, this couple needed $1.365m in net assets to retire with a $100k passive income.
After we looked at their current investments (namely, KiwiSaver), we determined that their investment gap was $758,689.
By investing in a single property, they were able to reduce that gap significantly.
The property’s projected capital growth over 17 years was over $800,000, and this puts them on track to reach their $100k retirement target.
This case shows that even one property, when chosen strategically, can make a meaningful difference, especially when paired with a drawdown strategy that uses both capital and income.
Case Study 2: Emma & Josh
Emma and Josh, aged 38 and 40, are a teacher and an accountant with a combined income of $275,000. They had strong equity and the capacity to invest up to $1.32 million.
Their goal was ambitious: build long-term wealth, reduce reliance on work, and create a lifestyle with travel and freedom.
They wanted $200,000 in passive income by age 65, and they were open to scale.
To achieve their goals, this couple needed to produce over $4.43m by the time they turn 65. Even when we factor in their KiwiSaver balances, they are still looking at a shortfall of $3.42m.
With Thrive’s guidance, they purchased two properties: one in Auckland and one in Christchurch.
This gave them geographic diversification, leveraged their equity, and accelerated their path to financial independence.
Their plan was aggressive; it was about taking action and building a portfolio swiftly and effectively. By doing this, the projected equity from these two properties is well over $3.5m due to the time horizon of this investment, so this couple has got a solid foundation for their retirement.
Their case highlights the power of scale. For younger investors with strong income and equity, buying multiple properties can dramatically improve retirement projections, especially when targeting an income-only strategy.
So… How Many Properties Do You Really Need?
It depends. There’s no magic number, only a formula based on your age, assets, income, and goals.
But here’s a rough guide to the net assets required to generate $100k in passive income by age 65 (based on a capital + income drawdown):
Age 30: $2.301 million
Age 40: $1.888 million
Age 50: $1.549 million
Age 60: $1.270 million
Your property count depends on how much equity each property contributes toward that total. Some investors reach their target with two properties.
Others need four or five. The key is to start with the end in mind and build a plan that gets you there.
Final Thoughts
Property investment isn’t about guessing or gambling. It’s about structure, leverage, and clarity. Whether you’re 35 or 55, the first step is defining your goal. From there, you calculate your retirement gap, choose your strategy, and build a portfolio that works for you.
How Can We Help You?
We help Kiwis build wealth through property investment. Our advisors will take the time to understand your individual needs and recommend suitable investment properties to help you build wealth and set up your retirement.
What Does This Look Like?
We use a 3-step process:
We start with a Discovery Meeting where we learn about you, your goals, etc., and you learn more about us.
This is followed by a Strategy Meeting where we model your retirement plan, understand key investment concepts, and briefly touch on some investment choices.
Finally, an Asset Selection Meeting where we discuss investment options in more detail and make any recommended adjustments based on what we now know about you.
Who Are We Right For?
We help people make smart investment choices and set up their futures. From first-time investors to experienced investors, we can cater to a wide range of people and help set up their futures through research-based property investment.
How Much Does It Cost?
Our advice is free to you! If you choose to invest, we’re paid by the property developer. This developer-paid model allows us to provide no-obligation property investment advice in New Zealand, without charging clients directly.
What Do We Do, And What Don't We Do?
What We Do
We offer end-to-end New Zealand property investment advice, helping Kiwi investors grow wealth through smart, data-led decisions. Our focus is on quality new builds in strong locations, tailored to your goals, guided by a team that knows the NZ market inside out. What We Don’t Do
We don’t do KiwiSaver, shares, cryptocurrency, or broad financial planning. Thrive is not a generalist firm. We specialise in property investment in New Zealand because that’s where we deliver the most value. By staying focused, we cut through the noise and help our clients make confident, well-informed property investment decisions.
How Do I Start?
Start the process now by booking a time to talk with our advisor here.
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