Hi all,
After just finishing ED and Tony's book "Wealth for Life" I must say it paints a good picture towards the technique of capitalising all interest and holding costs in favour of building a larger portfolio quicker, as to quote "the size of the assets is what really matters".
I have read a few posts here from some members where they actually believe it crazy and dangerous to do this.
I wanted to start a discussion on the true facts of whether this is a good technique or not, factually if possible without opinions creeping in.
At the moment I am only capitalising 1 block of land and 1 house near the beach as I have known about this technique for a while but have found it hard to break away from the idea of me getting all the profits, I don't want to give any back to the bank as extra interest, although a larger portfolio sounds nice too! (pending constant growth of course)....
I have also tried to only capitalise interest on properties I hold in sth east QLD, hoping the growth also keeps me that much ahead of the extra ever increasing interest.
Anyone have a story of there own? or a strong belief either way?
Please fire away!!!
D.
After just finishing ED and Tony's book "Wealth for Life" I must say it paints a good picture towards the technique of capitalising all interest and holding costs in favour of building a larger portfolio quicker, as to quote "the size of the assets is what really matters".
I have read a few posts here from some members where they actually believe it crazy and dangerous to do this.
I wanted to start a discussion on the true facts of whether this is a good technique or not, factually if possible without opinions creeping in.
At the moment I am only capitalising 1 block of land and 1 house near the beach as I have known about this technique for a while but have found it hard to break away from the idea of me getting all the profits, I don't want to give any back to the bank as extra interest, although a larger portfolio sounds nice too! (pending constant growth of course)....
I have also tried to only capitalise interest on properties I hold in sth east QLD, hoping the growth also keeps me that much ahead of the extra ever increasing interest.
Anyone have a story of there own? or a strong belief either way?
Please fire away!!!
D.