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Hi Steve, Why is property investment in a conservative way, instead of maxing out negative?? How is having a swag of property and a cash buffer, while living off the income bad?? Yes I agree that if there is good growth in the next 10 years then maxing out the leverage now is the best...

Hi all, SC, Al, those points seem to fall on deaf ears to those who don't want to consider the increased risk of LOE. Just using Duncan's example. Let's call it 10 properties worth $330,000 each that we owe $200,000 on each. Sell 4 = $1,320,000- $33,000 REA, - $121,750 CGT - $800,000...

Duncan, Your plan that would put you back to work, what happens if you are 70 when the crunch came?? What if instead of living off equity, you had sold some ( NOT ALL) of your properties to reduce the debt. You then placed the gains from the sold properties (after CGT tax) into offset...

Duncan, You missed the point, you have a DECREASING net worth when the gains are not there. Your SANF tolerance level will be greatly challenged when you have increasing debt associated with higher interest costs AND lower equity. ( and none of us know how we will handle it until we...

Hi all, Yes Duncan it is a pretty spreadsheet. But you make many assumptions. You assume that rental return is 5% and only goes down to 4.6% over the time of your plan. You assume there are no costs for PM, or vacancies, or maintenance and repairs. You assume that there nice...

Hi again, Steve a quick question about your quote "The KEY safety mechanism is NEVER to spend more than your previous years CG". What if the previous years CG was negative?? Should you be putting money into the system/strategy rather than taking it out?? For a retired person living...

Hi all, OK Duncan , I'll bite. Let's imagine over a 5 year period where at 80% lvr, you have not gained. But you were at 30% before you started with a new riskier structure. Before I continue.. Do you really think it is not riskier??? You have a property that you purchased for $300k...

Hi all, Really interesting thread this one. Assumptions. All the different ways to wealth painted by the different gurus, make assumptions about the future. They are usually guided by the immediate past. (ie 10-20 years) The weakness of all the easy sounding formulas for wealth, are...