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Yep; the option of a) tenants who pay for virtually everything and basically can't whinge about anything, or b) the other type we all know who have far too many rights in my opinion is an easy decision.

So, ok; I don't get it; what's the big attraction with 5 or 6 different asset allocations as opposed to just property? Surely if they are all un-encumbered, and all provide an income, then it's just a matter of which provides the most income; or is there something I'm missing? Are you...

JIT, What else would the portfolio be in? there's only businesses, cash (we know what happens to cash over time). Precious metals and art (no income from these two), or royalites from books etc? I'm 46. Already "retired" but will never stop working in some form. Businesses are my go. Ready...

JIT, that's probably the real way to compare the two I guess. If you were only able to use the income only from the cash (interest) and property (rent) as your living, the outcome would be; Based on income only, using your model of interest paid (7.25% less tax of 26% plus 1.5%...

so is the stock market. I don't think this factor can be used. All investors are hoping for cap growth for their assets. No-one knows for sure if they will get any.

You forgot the tax on the 7.25% interest, plus the fact that the capital is not growing in value. It is actually being eaten away by inflation. Assuming the tax bracket is say, 26% (is that the minimum these days?) and the inflation rate is 3%, the nett return on the million would be...

If you owned 3 unleveraged properties you probably wouldn't need to work ever again. You would have the nett rent and the cap growth, and for some it would be quite easy to live off part of the equity as well. Say you had 3 x $200k properties, with $300 per week rent on each...