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Discussion in 'Investing Strategies' started by Vera, 21st Dec, 2015.

  1. Vera

    Vera New Member

    21st Dec, 2015
    Coffs Harbour NSW
    Scenaro 1 Sell property worth $700.000.00 and buy 3 smaller properties live off 1 & pay down line of credit with the other 2
    Scenaro 2 Sell property worth $700.000.00 buy 1 property live off this property and pay off the line of credit
  2. jeremygard

    jeremygard Member

    22nd Jun, 2016
    Gold Coast
    Scenario 3: assuming you have $700,000 in clear equity in said property - keep this property, draw the equity and invest this into an income producing portfolio of shares, property and fixed interest investments - at 15% p.a. (conservative), that's $105,000 (before tax).

    A few assumptions in the above scenario - you have somewhere to live already - i.e. this $700,000 property is an investment property and you have equity in it.

    You don't need to actually draw down through a line of credit to access the funds. There is another way, which I can show you if you've got the time. Basically involves selling off a portion of the property to other investors, but still maintaining a controlling share of the property. Think of your property like a business, and you're selling shares in your business to other investors. Its a way of raising capital to expand your business. Later, you can buy back the shares and pay out the investors to retain full ownership.

    It depends on how much you need to live off. Are you looking for a lavish lifestyle, or just enough to not have to work too hard and pay your bills? This will then determine how you invest the funds - either conservatively into more fixed interest type investments, or if you want greater returns, you'll be taking on greater risk.

    You could also take a portion of the equity released from the property as outlined above, and start your own business. What is your greatest passion in life - what would you love to do and get paid well for in the process?

    This is a real scenario, and I can show you some examples of real people doing just this if you want to learn more.

    Hope this helps.

    Last edited by a moderator: 27th Sep, 2016
  3. Terryw

    Terryw Well-Known Member

    9th Jun, 2006