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I think we agree - one controls the full asset, not just the equity. The lender will hold you accountable for the debt portion no doubt, but the investor controls both equity and debt = asset. Agreed.

Hi HiEquity, What I meant was, say you have $ 1.00 in equity, you have no debt and everything is tickety boo. Your LVR is 0%. Sit there and pay big mobs in tax. If you take that $ 1.00 in equity and go and buy yourself something for another $ 1.00 - fully funded by debt, then you...

That is an extreme position to take, and one that restricts your exposure to differing markets severely. I couldn't subscribe to that. At a conservative 50% LVR, you are only controlling half of what you could be. At a 75% LVR, you are controlling only a quarter of what you could be...

Lynn, you're looking at it from an individual citizen who invests in property and pays taxes. From that perspective - like all of us here - you are 100% correct. HG is looking at the situation as if he is the Federal Treasurer of Australia who is receiving the tax take from the entire...

That was an interesting and engrossing read HG. You have enunciated your position well. Surprisingly, I found myself nodding in agreement with most of the points you raise. You would make a fine Housing Minister for Australia. Unfortunately, housing people is not of itself the primary...