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Hi redsquash, Thanks for mentioning tax benefits. Obviously both scenarios benefit, the IP strategy benefits most towards the end and the combined strategy benefits most earlier on. I've added a column showing the tax benefit @30%, and assumed it goes towards paying off the IP loan in both...

Hiya, Yeees - that's something that didn't occur to me until I did this spreadsheet. Although it should be obvious. Column O shows the diminishing returns of IP based on rent not keeping up with growth. The big difference is that income does keep up with share price over the long term. I...

Hi Belu, Glad to see you making your own assumptions. However, I feel that making the assumption that rental yields for high growth properties stay constant doesn't reflect my reality. That would imply that rents went up at 9%pa - ie in line with IP growth. Cheers Keith

Hi Land, Sure, your max LVR, max debt strategy is a great one. I'm putting forward a v. simple (no-frills) alternative that has the downside of less equity at the end, but more benefits earlier. This is one of the features of capitalising interest - more benefits (like retirement) earlier...

Following on from recent threads regarding the dangers and successes of capitalisation of interest and LOE. The attached spreadsheet shows what a $400K cash deposit invested in either - 50% in high growth IP and 50% an average basket of shares (Scenario 1) or 100% high growth and highly...