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Hi all, I wish I had the eloquence of Jo or See-ch.... So I will just agree, but of course I am just a chicken little religious zealot, who hides all his money under the bed, whithout any means, or understanding of any investment approach, and no possibility of ever being in such a...

Hi all, Alan, in your last post that is a couple of pages ago now, you talked where you were coming from, and the honest approach. But at the beginning you posted the following, "Originally Posted by Bill.L P.S. (and it would be good if they got the numbers correct anyway)" That was...

Hi all, Les, I copied the part of Steve's post out below that I took it from..... So for someone with $500,000 of equity available then to employ on a LOE structure . . . who had property worth for example 2,000,000 with $1,300,000 debt. They might have purchased a $500,000 property in...

And the winner is... Hopefully the forum members, as all the questioning makes Steve contribute a great deal more, and expands everyones knowledge. "Your understanding of the example is incorrect" Actually, as portrayed by Alan, my understanding of what this couple were doing was...

Hi all, Lets put some things into perspective. Alan raised the mythical Sydney couple who would like to LOE now. "Let's use an example a Sydney couple aged about 50 who've showed some foresight by paying off their Sydney home(now valued at $920K) a few years ago and they've also...

Hi all, Ahh hindsight, isn't it wonderful. Steve's example, "So for someone with $500,000 of equity available then to employ on a LOE structure . . . who had property worth for example 2,000,000 with $1,300,000 debt. They might have purchased a $500,000 property in Brisbane. (($125,000...

Hi again, Before the promoters of such schemes get all huffetty and puffetty, my opinion on the possibility of such corrections happening now are at a probability of about 1 in 5. But how many 50 year olds who have the type of assets our mythical couple have would be prepared to take such a...

Hi all, In response to Salsa's question.... "post the risks you think LOE have since others did not post them" I have put together a very long post (or couple of posts) to try and show where some of the risks are in LOE as portrayed by Alan. This involves normal market behaviour...

Hi all, Alan, you have reallly got wound up over this. I mean your numbers prove how safe this system is. Except for one minor problem. Your numbers don't add up. Lets look at the begining wher you bought up the mythical couple. Your numbers from post 87... "Let's say they...

Hi all, Simon, I think we are getting our wires crossed on LOE. I was using Alans example of the couple with a PPOR and 3 IPs, who could go into a lot of debt, and buy more IPs and a whole lot of sharemarket income funds. This was an example of passive LOE. The almost set and forget as the...

Hi all, Alan, Alan, Alan, What a wonderful personal attack. Now let's stick to reality and the topic. Where in any of the threads on LOE, have you or other proponents of the strategy laid out the potential risk?? I see that you talk about different peoples risk perception, but...

Hi all, Amazing how the talk of normal market corrections stir up people to believe you are talking gloom and doom. Let's just reflect on a little history.... Between '89-'91 the stockmarket retreated about 30%, depending on where you owned property there were also falls during this...

Alan, That is good, if it continues to happen. Now could you post how well off the couple will be if there is a fall in sharemarket values of 30% over a couple of years as well as say a 15% decline in property prices over the same 2-3 years?? Both have happened in the past and could easily...

Hi all, Alan, So this couple have the choice of having an income fund produce a variable $110k per annum with no debt. or have an income fund produce a variable $120k per annum with a debt of $4.54m hanging over their heads. This is a no brainer for most people near 50 years of...

Hi all, Merovingian, You have just pointed out one of the weaknesses of LOE by reinvesting into another asset class. If you take the $75k and reinvest it somewhere else, even if it paid a 10% dividend, you would only have a net 3% (after interest) to spend on the luxury car. Now...

Hi all, I think Les has hit the nail on the head here. "But then, property values DON'T always go up every year - so it's worthwhile to allow for some years of no growth........... Aren't there 100 year floods? What if we were to encounter a "100 year" excessive down-turn in property...