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I don't doubt that when I 'retire' my asset mix will be different from what it is now. I'm not very concerned about it at this stage, though. I just feel that I'll naturally adjust as I gain more experience in different asset classes. Alex

Another way I look at it is, if you focus on one asset class, you're more likely to be good at finding opportunities. So, while residential property usually doesn't yield very much, there are those who manage to find good yields (renos, development, just undervalued, etc). If I focus on...

And what stage you're in. Mine looks like (on gross): Cash 2% Shares 9% Resi prop 89% (LVR 61%) Overall cashflow (excluding my salary, of course) is negative. I'm aiming for growth at this stage. Income can wait. Alex

Sure to do it efficiently you'll need planning. But one absolutely dumb-as* but effective way would be to just sell everything, get all the equity in cash and buy decent yielding shares with franked dividends. Not very tax efficient, but it's one way to turn equity into income. I know how to...

I just can't really imagine myself sitting on a couple million in equity, living like a pauper and wondering 'I wish I know how to turn this into cashflow'. Alex

That's probably true, but I would think, for example, you can plow the profits from property developing into shares and paying off the debts on your own portfolio, so that eventually you end up with a low enough LVR to generate passive income? Alex

Maybe if you regularly renovate, develop and sell, yield isn't a big deal because your serviceability comes from profits from sales and equity-lends from value added renos? Alex

For me personally, what I'm seeing is that I'm going to get into small developments. I'll hold them for rent and capital appreciation at the start. Then as my experience grows and can do more faster, I'll start selling them and putting the profits into shares, bonds, etc. I also expect as my...

Personally, the current goal is $100k per year. After that, I can kick the job and invest full time. I still think you don't go from working / investing to full retirement. More likely, you slowly transition from capital to income, and then after a while you realise the income is enough for...

Though if you walk into a retirement planner or private banker's office and say 'I have an 8 figure net worth, mostly in residential property' I bet they would be able to come up with some strategies to create/access cashflow. Alex

Who would really be in that situation? If I have $1m in net assets you can bet I also have a chunk of capital gains tax to pay if I sold, and I would know how to make better returns than a high-interest bank account, especially over the long term. You can't take such a core thing out and...

Right now I wouldn't be able to handle 90% LVR like I used to because the portfolio has gotten bigger. While an under leveraged residential property has lower returns than a highly leveraged res prop, I'd say as your portfolio grows you don't have to take as much risk. Alex