Last year I had a guy from the forum approach me. He had about 5 properties cross collateralised and he had heaps of equity. His plan was to sell one and to spend a few years living off the funds released. I think the properties were cashflow neutral so not enough to live off the rents yet. But because he had the equity he quit his job and was about to 'retire'. By the time the capital ran out his rents would have increased and he could live on them, or sell another property.
So in anticipation he quit his job. He then sold a property. The bank refused to release the mortgage unless all the funds were used to reduce the other loans he had. Afterall, he had no job, so they didn't want the added risk.
This kind of ruined his retirement plans.
So in anticipation he quit his job. He then sold a property. The bank refused to release the mortgage unless all the funds were used to reduce the other loans he had. Afterall, he had no job, so they didn't want the added risk.
This kind of ruined his retirement plans.