Basic fundamentals:

Year 1 ? 15: Buy as many high growth properties as possible. Aiming for around 7-10 in capital cities. Never cross-collateralize & Fund negative equity shortfall by LOC to maximize tax advantage.

Year 15-25: portfolio will be self-funding by now. Hold properties to capitalize on CG.

Year 25 and beyond: Begin selling off properties to reduce debt and purchase some high-yielding properties (e.g. commercial premises)

Assumptions used in my calculations:

1) Yield of 4% (about average for Australia)

2) Interest rate of 7.00%

3) Never paying off any debt

4) Property growth of 7.00% p.a. (being conservative here ? average is around 8.90% p.a.)

5) Inflation ? 3.00%

6) Purchase price of investments is based on starting at $400k, then $500k, then $600k and so on every 2 years.

7) No PPOR for next 10 years

Based on the above assumptions my model predicts:

1) In 15 years portfolio net worth will be approx. $2.4mil (in todays $$$) & have neg. equity component of $55k p.a.

2) In 20 years portfolio net worth will be approx. $3.8mil (in today?s $$$) and be producing surplus rent of approx. $100k p.a.

The maximum amount of negative equity I will have to fund is $60k and will be in approx. 10 years? time.

Note this whole model has been done on excel using correct formulas so the numbers are correct and also discounted back to account for inflation.

I?m looking for commentary or critiques on this model I have created. Any advice or criticisms is much appreciated

I understand there are so many variables which pop up along the way but this is my basic strategy.

Thanks