Rixter, So the issues Daazz speaks of are not "real" ?
Please help us understand your short phrases a bit more in depth so we can also understand what you are suggesting.......
Early retirement
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Rixter, So the issues Daazz speaks of are not "real" ?
Please help us understand your short phrases a bit more in depth so we can also understand what you are suggesting.......
Im sure they are real for him otherwise he wouldnt be making the comment.
His way of accessing income from his portfolio is different to mine.
My experience with drawing LOE funds aka Navra style suggests otherwise. My lenders are still providing me funds because I jump the DSR & LVR hoops they require.
Yeah righteo cheers..
So it soudns like ONE had better prepare pretty darn well for it to work for them or else we could end up like Dazz foudn where the banks wont' give us money...
Hmmmm this would probably be the interesting & unanswerable juicy bit of information / knolwedge one needs.
Oh well, probably nothing I'll ever have to worry about anyway
So it soudns like ONE had better prepare pretty darn well for it to work for them or else we could end up like Dazz foudn where the banks wont' give us money...
Hmmmm this would probably be the interesting & unanswerable juicy bit of information / knolwedge one needs.
Oh well, probably nothing I'll ever have to worry about anyway
Rixter, so if you weren't working 3 days, would you still be able to do it ???
We're not trying to bag your plan or technique, we're trying to understand how things can be done or if they can be done.
Yes, providing I show my lenders the income level they need to see for the top up amounts I require. It's a matter finding out what they need to see then providing it to them.
I will continue to trade my time for money until we reach our required portfolio/equity base level to sustain our ideal lifestyle income.
Cool.
Now to try & work out what all that really means in actual terms compared to Dazz's example of it not working out in order to understand a bit better the options we have available to us...
How ? NFI of course
JC,
I imagine more than few punters are in that boat. One person who frequents this board who "made it" successfully with ressy is Chris.
She's got a decent swag under her belt, and I believe most of it is unencumbered, so has a whale of a time doing what she wants when she wants.
Perhaps send her a polite PM asking how she did it. I'd hazard a guess it wasn't accomplished in a decade or two. Reading some of her posts, it's a fully funded capitally growing retirement, but it wasn't an "early retirement", as the original post is getting at.
Yeah cheers Dazz.
I know nothing will give us a step by step, just trying to understanad where the convo you / Rixter brought up aobut LOE/difficulties of LOE might have led to etc a bit better since it seemed the 2 views were a qutie a bit different.
Sometimes I talk too much. Perhaps if I'd let the conversaton keep going instead of trying to clarify the question, which as you point out, may not be the right one in the first place... Or perhaps I'm too curious for curiosity's sake - I don't even know if my attempts will fall over like a house of cards after an unexpected wind of unexpected issues.. anwyway.....
Your description of Chris' capitally growing retirment example reminded me in some way of Jan Somers' book etc. That wasn't early retirement either... I don't think it was exhorbitant either.
When I do numbers myself, starting where I am & sayng "what if I did nothing else for 10 yrs, how woudl it look then ?" (of course, I assume growth /rent/expenses will rise by what I calculate which may not be accurate at all but hey, what do you do right ?).. then I've said "what if I bought this & later did that"
At the end of the day, I come up with various scenarios, but one thing they all have in common is (sides the assumptions I made which I already talked about), is it seems that they hinge on decisions / rules which I have no control over.
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Considering the huge CG I'd sell it asap because its price will probably pull back to the long term average
I think he paid $400K 12 years ago so unless it is a very unique property I'd imagine it has heaps of room for correction
Jaycee,
There is a really good book called the 'Property Puzzle' written by Stuart Wemyss. In his book he gives examples (complete with figures) of how many resi properties investors need to be able to retire by a certain age. (Early retirement). He compares the capital growth strategy with the positive cashflow strategy. It is a good read and gives some good strategies/ideas. Of course his examples are based on a number of assumptions etc which can never be guaranteed to be accurate!!
Regards Jason.
As usual, I agree with Rixter, and disagree with Dazz. But ina good way, everyone is different and I appreciate those differences.
Main reason being that not using equity profits to me seems silly.
It could at least be used to reduce debt, but either way: unused equity is
just waste if it's not used to increase your wealth..
I've been partially LOE for the pst 2 years without any problems at all.
Main reason being that not using equity profits to me seems silly.
It could at least be used to reduce debt, but either way: unused equity is
just waste if it's not used to increase your wealth..
I've been partially LOE for the pst 2 years without any problems at all.
We also have been doing so. We don't have a lot of property but enough to allow hubby to work if he wants, or not...
We won't ever be tripping off in our own jet, but that is not something we aspire to anyway.
I plan on living for longer than 2 years, though.
My issue is whether LOE is viable long term. My opinion is that if you have enough to LOE long term, you also have enough to switch to LOR, and LOR is less risky than LOE because you're less dependent on bank lending rules. I'm not willing to accept the risk of LOE'ing for, say, 10 years, and then find I can't do it anymore because the bank won't let me access my equity. And in the meantime I've lost all my earning ability.
How do you know the bank wont let you access your equity? If you meet their lending DSR & LVR requirements why wouldnt they let you?
Seems like your issue isnt they wont let you access it, rather, you dont know how you are going to meet their lending module.
Could you research more down that path and maybe that will help open up new horizons ?
Fair enough. At my age and stage of life, though, I'm not willing to take the risk.
