Hi allThanks for the comments. We don't have any other gearing...

Hi all

Thanks for the comments. We don't have any other gearing besides that investment, we own our home and a shack & land on the mid north coast. There are some funds invested that could take out the mortgage if needed.

I was surprised when I did the calcs and saw that it was cash flow positive - we don't need the money but if we choose one of our lifestyle options we may look to putting more into cash at good rates. It comes down to whether I can earn decent money if we live overseas.

Re the comment by one of the posters - risk v reward - very true that the leverage can work both ways.

No wishful thinking or ramping on my part but I truly think some areas of Sydney will do very well this year. Of course, there are some issues that could come out and mute that estimate :)

Another way we were looking at it was that the initial $250k would be well invested if we make 8% compounded over 5 years. In this respect the $250k would have to be about $370k after 5 years, ie, Sale Price of $770k - Mortgage = $370.

I can see the property worth $770k in the next 3 years.

In the end though, the whole thing has to fit into what we want in our lives but it nice to know that we can forget about the property, leave the mortgage alone and it gives us a whopping $1800 pa into our pockets :)


Again, thanks to all and wishing the best of luck