I cannot believe some people are still advocating LOE. I & others have posted extensively about the risks over at SS for around 10 years. Many posters know what LOE is - if you don't then search SS for details. Overview of LOE Risks Banks. The fundamental flaw in LOE that when you've exhausted your LOC & you ask your bankers for another one, the 1st thing they'll do is ask you for your income.... oops - you've had none for 10 yrs, so Computer says NO This was true 10 yrs ago, and APRAs recent moves have put the final nail in the coffin. You are not in control of your retirement, your bankers are. True Retirement. It's not a set & forget retirement - you cannot sail off into the sunset & never visit a bank again. It's probable that you'll need to take action again in 10 ys (& 10 yrs after that ?). Will you (or your heirs) be capable of doing whatever is necessary ? Psychology. The psychological aspect of LOE is rarely considered. You may have to wait 10+ yrs before you know if your plan is going to work. If you get little or no growth for a few years, yet you see your LOC ever increasing & interest building up on that, you will feel as though you're going backwards. It makes it hard to sleep at night wondering if the bears are right after all and it's all about to come crashing down. Contrast this to retiring on rental and/or dividend income - every month/quarter you get reassurance that your plan is working. Partner. Either your partner is 100% on board with ALL these risks or they are unconsciously incompetent and accept your plan without question. I hope you're not both unconsciously incompetent Change in Risk Profile. Sure... you may have supreme confidence today that it will all work, but will you feel the same way in 10 or 20 years ? I know my risk profile has changed during my investing life. And what about your partners ? Long Term. The likelihood that the long term future (ie your 50 yrs of retirement) will be very different to the last (exceptional) 25 years is not insignificant. The events of the last 25 yrs in the housing market didn't happen in the previous 200 yrs. LOE bets the farm that it will continue for the next 50. Flexibility. LOE forces you to lock yourself into a plan that you may not know is working & cannot easily change until a cycle completes. It removes considerable flexibility. Unforeseen events. Divorce anyone ? Try untangling it all before the equity fairy has had a chance to visit - you may be a forced seller with little equity at the end of it. Assumptions. You need to make lots of assumptions in your spreadsheet about the future based on your expectations of the economic environment over the next N years (eg inflation, rental growth, house price growth). If any of these change by even a small amount, then that small amount compounded over many years can have a significant impact on your lifestyle bottom line. No 2nd chances. If you get it a little bit wrong (through bad luck, bad advice, your own incompetence or otherwise), you've lost the lot. This is the antithesis of Property Investing which is very forgiving of almost all mistakes. There are ways of mitigating some of the above risks. Some may consider some of these risks to be low probability, however, the impact in every case is significant. And all these risks are over & above the 'normal' IP risks. I've mentioned elsewhere that IMO if you have enough equity to do LOE, then there are other ways of achieving a similar result with far less risk. If you are absolutely sure that ALL these risks are trivially insignificant or that you can mitigate them AND you've considered the alternatives, then pure LOE might be for you.... let me know how you've slept in 10 yrs time.... I've also mentioned elsewhere that either Short Term LOE or Partial LOE can sometimes be a good alternative for particular circumstances and usually has far less risk.