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My view is that cashbonds can be part of a solution, but they're not a solution in isolation. Straight forward LOE isn't a viable way to retirement unless you add something else to the mix. It can be put together to complement other strategies and increase your retirement income. Regardless...

For something truly specific in this arena, you've probably got to get a financial plan done by a financial planner. Even then it probably won't really help. Let's assume some very basic numbers and work backwards... Desired income is $40k pa. It's reasonable to assume that there are plenty...

You're right, I was thinking along the lines of various fixed interest products. Regardless, without significant alternate sources of income other than rent, $20k pa isn't going to get you very far to service a property portfolio. $20k doesn't even cover the banks cost of living component in...

All the equity in the the world is unlikely to help you if you want to borrow against it, but don't have an income to demonstrate that you can afford the loan. There was a time where it could be made to work, even a few loan products that accommodated it - anyone remember Bill Zheng's 'property...

And with that kind of equity behind you there's a lot of easier ways to get access to $40k a year, after tax and with cashflow and capital base increasing over and above inflation.

This is the point where LOE strategy starts to fall to pieces for many. Cashbond can work under the right circumstances. Lo doc & capitalizing interest won't. My suggestion would be to look at implementing this strategy with a substantially higher capital base. $560k simply isn't enough.