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How much gross value is enough?

Discussion in 'Finance & Banking' started by blks2k, 3rd Feb, 2008.

  1. blks2k

    blks2k Member

    Joined:
    26th Dec, 2007
    Posts:
    6
    Location:
    Melbourne
    Hi,

    I am reasonably new to investing. I just wanted to gauge an idea of how much gross wealth people are aiming for? Ie: $5million worth of property and $3million debt. Is this enough for people to do the Living Off Equity idea?

    Also what ages are people aiming at to be in the position to choose to work? For myself, i'd love to be in this position at the age of 35. How often are people in this situation at an early age?

    Thanks

    Rob
     
  2. Tim

    Tim Well-Known Member

    Joined:
    27th Jun, 2006
    Posts:
    111
    Location:
    Lismore NSW
    Rob,

    different people have different aspirations, however consensus amongst a few people support the idea that having around $2m equity is adequate, either net or with an LVR of 50-60% (i.e. 5m assets and 3 m debt).

    Of course this is totally circumspect but would provide a reasonable chance of living off equity on one way or another.

    There are some good postings on this forum and on somersoft forum on LoE so worth looking up.

    Tim