Hi all,
What is everyone’s thoughts on living off a (LOC) line of credit facility whilst investing full time.
My thoughts are that if you are increasing your asset base by more than your expenditure on a year on year basis, it all looks good.
To be full time investing with the knowledge that you can say, acquire $1mill of +CF property(diversified of course) in 1 year give or take and a return of say $200-$400 pw to start with in that year, and your debits for the year are say,an average wage of say $30,000 pa from the LOC it looks good, you would only need the LOC payments for max 3 yrs then you would be self funded.
Or invest the cashflow into other negative geared props in higher cap/growth areas to your benefit. And your LOC income is tax free, then in ten yrs time you have increased both your cashflow, your asset base by millions and have been doing it all for your self, not working for any one else.
Even if you went half a much as this, I figure you would be in a better position long term.Thoughts???[biggrin]
Higly Motivated Investor
Hi Krupta,
There is an interesting discussion currently underway regarding this subject, below is the link to it.cheers.
https://www.propertyinvesting.com/forum/topic/16349.htmlRegards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
That thread is still going…….
Excellent
Jarrod.
http://www.jenterprisegroup.com.au
data-security-communications-entertainment systems<- home networking and home theatres- talk to me first!!
*Technology Consultants*
Brisbane.Gold coast.Sunshine coastThanks for the heads up Mobile mortgage,
that thread is just what i wanted to know.
Thanx. [biggrin]
Higly Motivated Investor
I think it can work well if done correctly, but be careful. Not having a job may hurt your chances of obtaining (good) finance.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
And is it safe to ad obtaining Legitimate/legal/auditable finance Terry?
Jarrod.
http://www.jenterprisegroup.com.au
data-security-communications-entertainment systems<- home networking and home theatres- talk to me first!!
*Technology Consultants*
Brisbane.Gold coast.Sunshine coastSorry, by the above post I am re: Lo, no doc…..
Jarrod.
http://www.jenterprisegroup.com.au
data-security-communications-entertainment systems<- home networking and home theatres- talk to me first!!
*Technology Consultants*
Brisbane.Gold coast.Sunshine coastJarrod
Yes No docs would work, but may need a large deposit, low docs may also work if the person is willing to exaggerate their income.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Quote:Originally posted by KRUPTA:.
My thoughts are that if you are increasing your asset base by more than your expenditure on a year on year basis, it all looks good.
I too am looking at this path, but as you say it very much depends on:
1. Having a <edited>e load of equity to start with.
2. Equity base increasing at a faster rate than what you spend/borrow.
To be full time investing with the knowledge that you can say, acquire $1mill of +CF property(diversified of course) in 1 yearIf you can find $1m of +CF property, please let me know and maybe we can JV that into $2m.
Have a look at http://www.navra.com.au,I haven’t (yet)had the time to go into his strategies, but they seem to make sense if you have enough equity to start with AND your asset base increases faster than you spend it. Unless this is happening even Steve Navra advises that you are up <edited>e creek.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
