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You must know something I don't. Which other asset class has all the following: 1. 80% lend against initial valuation without insurance. 2. Cash yield about 5%. 3. Non cash deductions permitted against unrelated salaried income from things such as depreciation. 4. Preferential treatment...

Hi Evand, Some good points, and I agree with the importance of timing the cycle. But, to be clear, the example above was run with 3% annual growth in line with inflation. The portfolio of $2M didn't double, just the equity position assuming a 50% LVR. But you're correct that the...

Sure does! Using the above example and assuming you started neutrally geared at a 50% LVR then you had $1M in equity in that $2M portfolio and no spare income from it. BUT, in 10 years time you've almost doubled your equity to $1.8M and now have $40K pa in passive income. And all that...

Yep, And assuming your rental yield is about the same 5% odd then each year that $100K pa goes up at around inflation assuming demand and supply are nicely balanced and not impacting the price either way. Even at 3% inflation, that becomes $103K pa next year and $106.09K the year after. By...

That's a good point worth a little exploration... The primary benefit of residential property as an asset class is its preferential tax treatment. Its a great wealth creation vehicle due to the amount of leverage you can employ with it coupled with the lack of tax levied on your capital...

^^^ What all the smart people said... Buy, Hold, Wait, Repeat. Complex stuff in'it. Cheers, Michael