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Darn, I should've used the quote function. I was referring to 2 things - the level of debt that concerned you (I'm MORE comfortable having 80% LVR on $10 million than 80%LVR on $1 million) and I'm entirely unconcerned about Alan H's perceived risk. it's the Real risk vs reward tht is the...

My concern is entirely different. I have my $10m portfolio and I'm drawing $100,000 per year. :D By year 10, $70,000 of my income is going into servicing debt. :eek: I haven't done the figures, but for mine it's not good. And because I'm eating capital, I can't pay the debt off even...

I obviously need an education here, but my scenario has rents increasing much more slowly than house prices. With that you fall behind eventually as your serviceability needs increase because you are spending a significant proportion of your capital growth while never reducing your interest...

The tax free part is relatively simple. You are borrowing money - when was the last time you paid income tax on the funds you borrowed? I have not yet come to terms with this - it makes me profoundly uneasy.

Good work, Keen. I started with some fairly basic ideas and took at bit of a different approach. I wanted $100k p.a. indexed (rent rises would do that) and figured that after all expenses I'd be getting 5% of my equity plus cap growth on the portfolio value. In order to grow the portfolio...