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Just to add my opinion, I'd like to define living on equity, in such a way that it is separated from living on debt. I think there are basically two views of living on equity floating around in this thread. The first, A, is where an investor who has received, say, $100K in capital gain...

If you bought a $100K property back in 1995, (10 years ago), assume it is now worth $200K. If you bought the property back in '95, using a 20% deposit, that leaves an $80K loan. Assuming the loan was interest only, and you did not pay any of it off in that time, then the loan will be worth...

Well for the moment the $75,000 goal is what I'm aiming for, so either way it won't matter short term... :)

Hi domcc1, You raise an interesting point. :) My signature was just based on using a conservative yield of 5% per annum. Indeed it is possible to achieve much higher yields, especially in property, if one diversifies into non-residential property, (as an example), etc... The...

I agree with this. I see it as sensible, from a real estate point of view, to have the rental income from the IP portfolio to live off of, by means of groceries, bills, little non-essentials, kids' education, etc. Then, if there has been growth in the portfolio recently, use some of that to...