I think this is just a nice round number & little has been done to work out exactly what is needed.
I disagree! If the figure is for their 'family' income, then the amount is only $50k each in a couple situation. After you take depreciation into account, there is not a lot of tax to pay.
Woah! Hold on a minute! What if the return was 8 or 9% on purchase price? The asset base needed can realistically be a lot less.
I can't speak for anyone else, but yes, I have. We've got a sizeable portfolio, and are in sell down mode at present, but of all the properties, we are only selling 4. We are NOT paying down anything other than the PPOR (already done), and are keeping funds in offset accounts. There's plenty of properties sitting there, should we need/want to sell down others at a later time, plus plenty of income coming in. Lots of depreciation as well as some NRAS payments and we will be paying NO tax whatsoever.
Like I said, we don't need anywhere near $165k.
I don't think it's that big a task at all, BUT, like Rixter, you have to be in the game for a while. Buy stuff with good cashflow, hold, buy more stuff with good cashflow, hold. Rinse & repeat as many times as you can, spreading the risk around the country, to limit the bracket creep of land-tax. After a good many years (at least one cycle, but better if you get two), you should be in a position to leave the workforce, if that is your wish.
Just another perspective!