38. When it comes to retiring on property, lower LVR is the key
Obviously you can’t retire on a portfolio of negatively geared properties. But you also can’t retire on a portfolio of cash-flow positive properties if they’re only cash-flow positive after tax. High cash-flows areas are quite often high-risk areas. These are not locations to hold a ‘set and forget’ property. The relaxed cash-flow portfolio is one with a low LVR.
Fifty per cent LVR should be more than enough to make a property cash-flow positive. That’s your target.
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