Gday folks.
As for the Living Off Equity deal: I have been looking into this for a little while, not because I want to do it particularly, but I just find all these strategies interesting. It turns out most of the gurus promoting Living Off Equity are not actually doing what they are preaching. They obviously have a pretty decent income from doing seminars, selling books, etc, plus most of the big boys and girls are into property development, which pretty much makes LOE a dead issue for them.
Im not saying this is deceptive of them at all, in effect they are preaching a doctrine easily understandable and available to the masses. I would say that by the time one is legitimately at the equity level required to sustainably living off equity, you would be a fairly driven and goal oriented person, so although you may do LOE for a little while, you would soon get bored and start doing something that you are passionate about, and probably make even more money doing so.
Without a doubt, even on conservative growth estimates with a large enough equity base, LOE is sustainable and workable - numbers just dont lie. so barring any major catastrophic crash in property prices (which would ruin not just LOE people, but basically all people invested solely in property; maybe LOE people moreso but lets face it, is there much of a difference between being 2mill in the hole and 10mill, you are buggered either way!) it seems to me to be more an idea of financial freedom - you could LOE if you wanted to, maybe you take a few months or a year off LOE for a while, but sooner or later you would develop a passion to do something, which would probably render LOE of minimal value anyway - maybe you use some equity to get by the first few months of starting a business, or use some equity to live while you start property development, or whatever.
Hope this makes some sense at least!
