How much debt do you carry?

[WASP]

In 2006 we purchased an investment property for $169.5k and were s...tressing, Perth then went throughout its boom

 

[simbi99]

I guess my next question then is, when do you cash in?
When do you cash that 5 million dollar portfolio in?

 

[Michael_X]

There is good debt and then there is bad debt. I want to carry as much good debt as I can serviced and structured correctly. No bad debt.

https://www.youtube.com/watch?v=rQJAL1PFL8k

Good video from Robert Kiyosaki on the topic.

 

[MTR]

I guess my next question then is, when do you cash in?
When do you cash that 5 million dollar portfolio in?

How long is a piece of string.

How can anyone answer this?? Its dependent on so many factors, quality of asset, cash flow of portfolio, LVR, your age, what you are trying to achieve in terms of income etc etc.

MTR

 

[simbi99]

Well exactly, whats the cut off for different people?
When do you pull up a deck chair off the coast of Cuba?

 

[MTR]

My thoughts exactly if the debt can be serviced without trouble you shouldn't have a lid, just wanted to know if it was the same thought process all round

Servicing the debt is part of the story, but you can not give up your day job doing this. Next step is replace your income. So then you probably need to be active investor not passive and look at strategies to reduce debt.

 

[MTR]

Well exactly, whats the cut off for different people?
When do you pull up a deck chair off the coast of Cuba?

What I said in previous post

 

[peastman]

Because at some stage would you not want to cash in and enjoy your labour?
Not much point carrying debt until you die?

Cash in a property as I need. Just replace it with another one for the future.

Buying property using the power of gearing made sense 20 years ago, it makes sense now and it will make sense in 20 years time.

 

[Deltaberry]

Around $9m. Not sure if it has much relevance without context.