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Not rude at all Mark. Yes, I am, & I have strong views about NEVER having to return to work, hence my attitude towards risk.

For me, that is the crux of any (permanent) retirement strategy - it must be extremely low in risk. And LOE isn't extremely low risk. I think many people here are in the position of wanting to take relatively big risks to achieve equity (this is good:)), but look at it from the other side of the...

Hi HK, I agree with Julie - most of these risks are applicable of any IP investing. The issue with using LOE as a strategy is 2 fold - – the consequences if failure occurs – the likelyhood of success The consequences of failure are permanent – suddenly there’s a property downturn, an extended...

Pete, Well done. That's how I define LOE too. Good risk mitigation. Questions I asked myself when considering using pure LOE - If I didn't get IP growth how long would my SANF be OK for ? eg Bris was growthless for 10 yrs before 2001. After 9 years would I be beginning to doubt if growth...

Hi Simon, I too am living off income from c/f +ve IP with LOE as a supplement. I also have shares & LPTs which provide sufficient income to live off. If & when growth in either shares or IP occurs I may draw down some of the equity & utilise LOE. I may capitalise margin interest & pocket the...

Capitalising interest on a margin loan that's already leveraged to 50% that has a strategy of buying in a falling market, and whos' aim is to provide income rather than growth sounds more than a little risky to me. Can you quantify how risky it is, will the structure fail once in every 10 years...

I'd disagree - the 'D&Gers' haven't advocated doing nothing - they have advocated many different approachs to investing. LOE had it's place in the strongly rising market. The issues I had with it were that it was being sold as the last retirement strategy anyone with sufficient equity would ever...

Simon, I agree we should define LOE. What (I believe) you are doing is buying, renoing, revaling, drawing down equity to live on & invest. I didn't consider this to be LOE. Now I can see your point - you don't have an income, so you don't pay tax. However, you continue to work (at renos). As...

Hi salsa, As someone who has posted previously as the risks of using LOE, I'd suggest you read the whole of this thread containing this post by simonjulie, in which s/he says 'I am an incurable optimist. I do not spend a lot of time thinking about worst.' And again compares a worst case LOE...

Yes - LOE is still an option.... BUT... Yes - LOE is still an option.... BUT.... ....only if you have a solid backup plan - eg you're happy to return to work have sufficient rental/dividend income for essentials sufficient equity to last forever high locked-in c/f increases you're able to...

Hi Panic, It's all about volatility and therefore risk. Using a LOE strategy is guaranteed to work IF property is guaranteed to double in value every 10 yrs and a sensible amount (< 40%?) of equity is drawn down in that period. There are some gurus who would have recommended LOE to Japanese IP...