My spreadsheet tells me that my passive income is expected to increase faster than my personal expenses, so excess cashflow will be directed towards one or more ofI have a question about this structure. So by implementing this constant ‘LVR top up’ you’ll never be debt free right?
- higher personal expenses
- paying down debt
- servicing more investments
I expect that in 10 years time my current debt will seem trivial, just the same as the debt on my 1st IP from 10 years ago appears trivial today.
And I may choose to sell assets to pay down debt.
So in answer to your question... NO I expect to be debt free at various times. The strategy is dynamic & subject to change as circumstances change.
I think buying share assets in the Trust name is better for well documented reasons. Buying IP in trust is a much weaker case - because of Land Tax in some states. If I was starting again, I'd use up all my personal land tax thresholds & more before buying in trust. Of course, get professional advice.Also is it better to have a Trust before trying to replicate this? And buying assets in the Trusts name?
Cheers,
Keith