Time buffers.

With my current lifestyle, able to survive between 5-6 years

 

Up to 2 years providing there's no vacant property. If hubby is working then a lot longer

 

About 2-3 weeks, but insured to the hilt.

Work in progress.

 

Looks like we're a well-prepared lot

I'm about to tip 3 years of living costs into my next deposit or two and will have the smallest time buffer I've had since I began investing.

 

As far as cash only I'd last about 6 months with no other income. Including my rental income I'd be ok for a couple of years with all tenants in place.

I'm also in a similar situation, having recently settled on another IP, buying a new car and not having sold the old one yet I'm not much better off (cash wise) as I was at the end of high school...

With the car sold and a tax refund around the corner my time buffer will improve greatly.

 

This was my issue, temporary though.

 

Also temporary for me, though I'm pretty comfortable with a small buffer at hand now.

On the odd chance the world ends, I could nuke an IP and keep afloat indefinitely.

 

Gave up all work 4 years ago as it was interfering with my travelling!!! Do not intend to go back. So living off my investments and travelling overseas 4 times a year. It was worth all the effort

 

That's my goal. In the meantime, still trying to manage a 4-week overseas trip each year and invest in IPs without eating into the buffers.

 

Gee - not long- up to 2 years if we couldn't earn an income, a bit longer if income protection kicked in ( We are insured but it would depend on circumstances, wouldn't it).

I guess my family of 5 could move in with my mother and we could rent the PPOR out - that would almost keep us afloat. Mum would love that!

This thread highlights our need to pay down our PPOR debt fast and acquire an increased passive income. Baby steps...

 

Gave up day job 9 years ago, but I now have a property development business, have enough income to keep ticking over in a comfortable lifestyle. Now working on creating income and building portfolio for my 2 girls and teaching.

MTR

 

We know someone who sold their house in Epping about 18 months ago to buy a house $150K less in Pennant Hills just in case she lost her job.

In that time, think about the amount of money spent on selling, moving and stamp duty not to mention the level of growth.

Some people have no forward planning skills.

 

Jesus 2 weeks?? What if you're fired or sick? Insurance isn't an immediate payout is it?

 

I draw down on a LOC until it pays out.

End 2014, I had been living on LOC for 1 year @ 11%, and 100k in that hole alone.

So, relatively, 2-3 weeks is a vast improvement and I'm not uncomfortable.

 

Fair enough

 

I'd have enough to last about 12 months based on current living expenses (which would decrease if my income was taken away).

I'm not sure it's ever been much more than that. Every time I've built up some sort of buffer I've used to get another IP!

 

That's my plan, too! Atm we have a decent buffer but won't use it to buy because -well, it's a buffer. Can't wait to get enough for the next one. The hard part is deciding how much to leave as a buffer and how much to spend on the next one. Any advice on this?

 

The size buffer comes down to ones personal risk profile.

We are all different, with all varying risk profiles.

As such what's right for one person may not be right for someone else.

There is no definitive answer except the one you make for yourself based around your current portfolio & financial position..

 

Step 1: Work out how long you would like to be able to keep afloat with no income–this depends entirely on the person. It could be 2 weeks or 2 decades.
Step 2: Ensure you have enough resources at hand to last that long.