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Dear Bill.L, This makes me terribly sad . . . :o I appreciate the many fears that many conservatives seem to hold . . . but what if you are all wrong?? What if property DOES average 5% pa over the next 10 years? Do you realise that by selling the assets as in your quote, you...

Hi Everyone, Very unrewarding to see Duncans' spreadsheet attacked :mad: The rational approach is to drawdown 2% less than the CG in any year. This way the system will always sustain itself . . . and the drawdown amount should be sufficient to render the portfolio cashflow + Lazy...

Soooo many questions: :) Hi OSienna, My point is that with the correct safeguards (Buffers) the risk is NOT higher . . . with a better return. IT Boom?? That’s a bit like buying highrise units off the plan and hoping for a good result. The most basic investment criteria is to do due...

Duncan . . . whew :eek: I too am very passionate in defense against negativity 'holding members back from achieving their dreams. However I must spring to the defense of Bill.L: Opposing views are good! (Add value to the debate) Each to their own . . . The reality really is that...

The odds of a prolonged slump in the next 50 years are at least equal to the odds of a matching boom in the next 50 years. :p Therein lies the risk of seeing the glass as half empty. Two factors to consider: Initially the use of equity allows you to acquire a much BIGGER asset...

Hi see_change, "It's better to be guided by your dreams than your fears." :D I do take cognition of your concerns: "Prolonged slump" . . . meaning what 10 years, 20 years?? Yes this would be a disaster . . . irrespective of whether you were carrying debt or not. The world economy...

BUT it is just 10 portfolios of $1,000,000 each :p A 10 million dollar property portfolio will at 5% CG produce $500,000 per year. Now perhaps you are worried that you cannot produce 5% every year? Well . . . tell you what: Delay your retirement by one year and wait to see what the...

The cashbond (which is a type of annuity) is ONLY NECESSARY if serviceability is required. In this case the amount placed in a cashbond should provide sufficient income to: Service the loan Provide income for living needs. (Financial independence) If...

Obviously the egg comes first :p Aha, the method is simply to get the banks to recognise that the shares will produce the necessary income. Note that this is no different to a bank recognising that rental income will form part of the serviceability income . . . even though you haven't as...

Interesting post :) Hi kissfan, The idea is to house the equity in an income producing asset; so whenever equity is drawn down it might for example be placed in shares that DO produce income. What the bank then sees is: Assets (colateral) that give CG Distributions and dividends...