Hi All
Having been property investing for a while now I'm starting to consider what happens when I want to stop working and start living off the properties. Something I'm sure a lot of property investors will have to consider at some stage.
I've been looking into one idea that is popular with some property gurus – that is keep borrowing against the increasing asset values – in effect consuming a portion of the capital gain increases over time.
I like the idea of holding the asset base instead of selling but I'm a bit concerned about the reaction of banks to the strategy – ie at some point they will want to see some evidence of income to support the increasing borrowing cost.
Has anybody out there given this some thought or is applying this approach – the point I make about the strategy appears the only hurdle to making this a goer.
Thanks
The Bish
From what I hear the banks have tightened up since the GFC on the practice of releasing equity from your properties to live off and capitalising the interest ongoing?
The last thing you're thinking about is retirement. We all have two basic choices: someday we can either be scraping by, or we can be living well. Choosing to live well is an easy choice to make. and the good news is the sooner you start investing for retirement, the more money you'll have when you actually do retire. Why? The longer the term of an investment, the more chance your money has to grow. Time makes a huge difference in the total return of an investment.
How should you get started? Retirement may seem a long way off — and if you get started now, that time will be to your advantage.
My father sought advices from the experts when he retired. And I could probably give you the best investment adviser he has before he retired. It's Mark Sumpter. He offers a wide array of options. If you're interested, you can visit his site at http://thewealthcollege.com. i hope this would be of help to you in your decision makings.
Thanks for the input.
I'm not actually talking directly about retirement – more stop working for someone else – I'm only 44 at the moment.
The investment advisor is probably good advice – even just to bounce some ideas around.
I'll check out the website.
Thanks
The BishI'm so sorry, I made the wrong assumption. Anyway, the site I recommended will help you in many ways it can. Thank you.
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