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Ask Michael Anything [Video] – How to reduce debt to live off your property portfolio?

The ultimate dream for a property investor it to get to a stage where they could comfortably live off their investments – but how can this be done safely?

This week watch Michael explain and discuss the steps to take to ensure your financial security.

This week’s question:

property build puzzle

Michael, 

You often speak of 3 phases of investing:

  • Accumulation
  • Debt Reduction
  • Living off your property

Could you please explain how you go about reducing your debt in the second stage to the point where you can live off your property portfolio. 

Margaret, Elsternwick

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Australia's leading independent property commentator, brings together leading authorities on the property market. Each week at Real Estate Talk we take a fresh look at the property market so you get all the facts to help you make the right choice.
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'Ask Michael Anything [Video] – How to reduce debt to live off your property portfolio?' have 2 comments

  1. Avatar for Property Update

    February 10, 2017 @ 10:22 am Ben Munt

    Hi – I have a question for Michael. When you mention your preference is to ‘live off the equity’ of your property portfolio… I’m assuming you mean obtaining lines of credit against your properties? If so, isn’t this a somewhat risky strategy in that if the market flattens for a couple of years, you’ll gobble-up a fair bit of equity during that period?

    Do you have any other ideas as to how one might ‘live off the equity?’

    I enjoy reading your posts so many thanks!

    Ben

    Reply

    • Avatar for Property Update

      February 10, 2017 @ 2:11 pm Michael Yardney

      Ben
      I explain my strategy in detail in my books, but in essence you’re right.
      And you are correct that at some stage in every property cycle there will be a couple of years of flat or no growth or falling values.
      That’s hwy you need a spread of properties in different states and you need sufficient financial buffers to see you through those lean years

      Reply


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