Is there any way you can take an extended break from work but still be able to go back?
We packed everything in a few years ago to LOE and trade shares. It was AWESOME for the first year and then quite a few things went to custard. We had walked away from a very profitable business and were then stuck. Our portfolio of properties had dropped by about 20% so we had no servicability and and no equity for a refi/LOC. We are actually living the disaster that can happen when you jump too early
We are only now (3 years in) starting to make a comeback but our properties are still way below their last bank vals when things were good.
I am not trying to scare you and you may not make the mistakes we made BUT the reason we jumped when we did was sheer exhaustion from the business clouded our judgement. If there had been a way to take 6 months off maybe we would have done things differently.
Good luck with whatever you decide.
Thanks for sharing.
Read an interesting post by landlubber recently regarding LOE and I think he has been doing this for 5 years now.
What I learnt from his post and your post is the LOE strategy is flawed, as one is relying on properties continuing to rise, ability to access equity, bank policies not changing etc. If the market goes into free fall you could suddenly find yourself bleeding badly, compounding debt is sure easy way to go broke.
I also know someone who LOE for about 4 years, due to property declining over this period and playing in the same market they have had to sell their family home to pay back banks and now they are both back to work and starting all over again.
What I also find interesting is the property gurus who promote LOE are actually not doing this themselves and probably never will, they are LOB (Living of their Business).
MTR
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