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I have Oracle. Problem is bc my portfolio is negative I don't have cash to put in the market per se ie it will essentially be borrowed funds/equity. But I do see the benefit eg franked divs at 6%, cost of borrowing at 4.4-5% with no maintenance, tenant repairs etc etc. Might be an...

Hi MTR, I'm actually at a bit of a loss as to how to change tack to a hi yield investing scenario. Only because I have a knack of buying well and getting instant equity in metro areas, and have stuck to that formula. I've traditionally struggled to find houses or apartments that generate...

Hi Oracle -probably would bug me, but I've factored in a 3% rise pa for those expenses as well. Can't factor in rent rises and not rises on cost side ie can't have your cake and eait it too Plus my yearly budget includes $30K for travel/fun every year.....that's a discretionary expense I can...

I'm factoring 4% average growth per annum, and 3% rental growth. It won't be linear, it might even go backwards but that's what I'm factoring. Do you think that's too aggressive (serious question, not rhetorical)?

My Sydney portfolio is anywhere between 5-6% from 2003 to now (using a pseudo conservative val today, not frothy). So it's nothing t write home about from peak to peak. Timing the market is important.

Hi MTR, I've pretty much modeled all the numbers over the next x years and as long as modest rent increases take place and interest rates are mitigated then it is doable. At some point in the future, LOE will transition to LOR as rents rise. But you're right it is more risky in that what you...

Similar to my current strategy as well Rixter and a lot of similarities to me. Whilst I would PREFER to LOR, I'd rather leave the JOB a few years early....and if the JOB doesn't bring you fulfilment, then freedom from it may. That's what's driving me at present. IMHO the safest way to...

Gather you're not a beach person Skater lol. Balmoral is arguably one of the best calm water beaches in Sydney. Love to own an IP there but would literally bleed me dry in repayments.

Bear with me as I skew this thread in my favour yet again.... I'm rather impressed with what some of the forumites have done including yourself Skater but bottomline/my reality is this: Unless I can get my hands on a very sizeable loan in the near future to buy a commercial/resi/dev that will...

Huge income is a relative thing Skater and whilst I'm on a 6 figure salary, its def not huge. The land tax bill is also relative - irrespective of the value of purchase, my land tax component is normally 75% or higher of the val whether its Blacktown or Newtown. But I take your point and if I...

My (personal view) again - I don't like the CC from an investment standpoint. Commuting from the CC to Sydney to work would test anyone. It looks appealing on the map ie close to beach, within striking distance of Sydney and much more affordable. I'd probably liken it to, I don't know...

I tend to average about 5% yield on purchase. In recent times, my lowest yield has been about 4.4% in Brisbane and highest has been 8.5% (on day one) in Blacktown LGA. That was my last purchase in Sydney in 2012. I sacrificed on yield on that particular one in Brissy bc it was a (very)...

MTR, now I'm jealous. Yes Perth, I slept right through the boom without firing a single shot. US post GFC as well however, I wasn't in a position cash wise to buy outright without borrowing. All regrets but I guess my lack of flexibility has both been a blessing and a curse ie accumulated a...

Hi MTR, in my (potentially skewed) interpretation of LOE is essentially a once off. Say my debt is 1mill and value of portfolio is 2 mill. I go into bank whilst gainfully employed/ own a profitable business and top up to 80% ie walk away with $600K and NEVER come back to ask for money...

Hi Virgo, the devil is in the detail. $3m net does not imply $3m cashout, its more like $1m cashout (today) via an 80% LVR. Noone's gonna lend 100%, not that anyone would LOE at 100%. SANF would be out the window. If I liquidated a big part of the portfolio, take away CGT, the exorbitant...

Hi Skater, we don't live in a PPOR, and highly unlikely we ever will. With entry level 2 bed houses in the suburb of our choice starting at nearly $1.5mill, we don't have much of a choice. Plus ironically I kinda like the freedom that renting offers. We pay $720pw in rent for a townhouse...

All true Terry, but I don't think one should 'bank' on starting a SUCCESSFUL business etc. that can replace one's income in the immediate future. I would probably work on calcs on being a lounge lizard and any earnings beyond that are a bonus. Being out of a PAYG environment for more than say...

Well without hijacking the thread for personal interest :o I have 2 options: 1) Exit rat race in 10-12 yrs via LOR (quasi optimistic scenario) 2) Exit rat race in 3-4 yrs via LOE - portfolio value is already 8 digits with a 70% LVR currently. The (perhaps false) sense of comfort is that the...

Have already passed that point Virgo but I still can't figure my way out of the rat race inside of approx 8 years via LOR. Longer if interest rates spiral out of control. For those with young kids and yearning to retire early, I think LOE (not LOG) is a viable strategy if done carefully. In...

Seriously $50K? That would have to be excluding rent/mortgage, otherwise, they're living on fumes. Cutting out all discretionary expenses aka no life would get me to about $60K. And that's excluding rent/mortgage. Throw in a modest o'seas holiday every year and one's easily beyond $100K...