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Depends on your age and mindset. If you're risk-averse, buy a house, get a job. If you're a little more risk-taking, lever a bit and try to get 8-12% returns and maybe do some side jobs. If you're risk-taking, aim for 10x in 2-3 years because unless you're a high flying employee (and I...

If you're negative gearing, why would you get a better return than buying a paid off house outright...? Lol

The Australian one has that now. 0 and 00

I'm very philosophical.

That makes more sense I love philosophical discussions.

Haha then have fun retiring at the beach - sleeping - as that's about all that one could do with that sort of debt and income, as I said originally.

So the first property's not unencumbered anymore... ah no wonder you're not a household name :cool: But don't worry, neither am I, or actually...

Aaron said: 1. Buy $300k property. This property will have unencumbered title, so that means it is fully paid off. This property generates $500 rent per week. 2. Buy a second, $600k property with $300k equity and $300k loan. My question was, where does the second lot of $300k equity (in...

Ok I'll let you slip through the cracks in relation to the second question. So where's the $300k to buy the second IP (my first question)?

So he's just spent $300k to get an unencumbered title. Where's the other $300k for the second $600k house? Oh and between all this, where is he living? On the street?

Sigh... Let me do the sums for you. You buy 3 x $500k properties with $25k stamp duty. Put in $100k for each, that's the 80% gearing you're talking about. At $425k debt (since you don't have money to pay the stamp duty) at 6.8% that's $29k interest you have to pay per property. If you...

Yes buying 3-4 negatively geared properties and paying LMI since you're at 85% gearing. You've just thrown yourself in to the rat race for 10 years. Good job.

Haha how can you go to a beach to sleep with $500 pw?!?! Well you probably can - but that's about it, sleep. To answer your question - it depends on your situation. If you have a portfolio going already, I'd think of ways to make this $300k generate 20% returns per annum (using leverage or...