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Agreed, if nothing changes, nothing can change.

Why cash flow positive after tax - would it not be better to be cash flow positive before tax?

Thanks Rolf. Generally from my readings on this forum, I have not heard of many situations wherein x coll has been recommended. I guess those situations that you have mentioned are not that common and hence as a general principle, we should resist x coll.

Rolf, is there any scenario where x coll could be good for a property investor?

I think a lot of these failed businesses are small ma and pa type ventures where they think it would be good to run their own business without knowing what a ball busting and difficult venture it is.

Yes I think with any investment that does not show a sustained history of capital growth, the best time to sell is when the rental yield is at its highest because the opportunity is unlikely to come again in the present lifetime.

Must be a rare exception. A bit like winning the lottery for one site to go from 4mil to 40mil in a short time.

Thats an excellent yield for resi IPs, well done. Presumably with 21 Ips, they would be spread out in different states. Do you find managing 21 IPs with multiple different PMs to be a major consumption of your time and source of anxiety?

But the problem is that we can never really tell. Hindsight lets us know that between 2003 and today, the Sydney market has surged a lot. However, in my personal experience, my ppor which I bought in early 2010 remains much the same in value. Whereas in 2011 to 2012, there was a slight sag or...

I am referring to 100k gross p.a. in today's dollars. But it is better to be in the top 0.5% than the bottom 0.5%. I think if you have a large asset base early on then it is easy all the way because of inflation and compounding of interest/dividends/rent - like a snowball. Money begets money...

Nice story Geoff. So where are we in the cycle now - Sydney market?

I appreciate that these events happen but when it happens to me as a micro business owner, I have found that it hits me very hard.

Given the recent turmoil in my life, I was very pleased to have large cash reserves just sitting in the bank with easy access. Renovating a commercial property, purchasing, legal fees, stamp duties, phones, garbage removal, computer installations felt like a bottomless quagmire which consumed...

I will intend to distribute the nest egg of $3m into a variety of asset classes shares, ETFs, property and bonds/cash.

Twenty years ago, the average house price in Sydney was half of what it is now. SoI suspect that the $7m of 2034 is equivalent of $2.5m of today which may generate a passive income of 75000k p.a. at 3%, hardly a comfortable lifestyle.

20 years is a very long time. $7m is massive now but may be insufficient in 20 years time.

The loss of the key employee in my micro business has given me a good taste of a fraction of what a divorce must feel like.

Still cannot buy 30mil of property earning only 1 mil pre tax a year.

They must be like a diamond in the Sahara or searching for an ear-ring at the bottom of the Pacific ocean. I have never met nor heard of such a woman. So clearly, there must be some very lucky Spanish men out there.

I am only kidding. I dont think such an ideal woman exists in 2014 in western or eastern societies. Finding a woman with just the former criteria is near impossible and having both criteria will probably happen when pigs can fly. More realistically, I should be aiming to find a woman...