Property then income-producing shares?

Could do the extract equity and buy shares equation instead.

 

I draw the line at borrowing from equity to purchase shares. It would have to be a "cash" purchase.

 

A quote by Terry seems apt here also

 

Might be better if you put any spare cash into an Adult XXX store.

I always see plenty of customers going in and out there.

 

I can see the rationale for selling if you think the property won't perform as well going forward, but apart from that there's not much more risk borrowing against property or buying shares in cash. The reason why margin loan are considered "risky" is due to the possibility for margin calls. If you borrow using equity as security then you won't be margin call irrespective of the share price.

Your risk with the share investment is with the value of the share decreasing, which is not much different to if you had bought the share with cash.

 

Check out 'which bank' Share Price dive today.....

pinkboy

 

I know Mate,maybe it will go down till it goes in line with the offer that comes out later this week,either way I intend to take up the offer,just go for a long ride and don't read the media for a few weeks..
https://events.miraqle.com/cba-enti...ation/?ReturnUrl=/cba-entitlement-offer/Home/

 

I was at a auction a few weeks ago where the entire contents of one of those stores was on the floor in boxes ,makes one think when one of those business models ends up bent over and broke,i never bought nothing "Datto"..

 

Some of that was due to going ex-div.

 

I listen to Peter Quinton of Bell Potter. He analyses companies that are likely to increase their dividend over the next few years and have noticed that share price appreciates in tandem with dividend growth.

 

Property on average has a lower total return than shares, but it is much safer to leverage into. However as values of existing properties rise the benefits diminish because the yields drop, land taxes and other costs increase and the benefits of the leverage lessen.

So one strategy is to make the capital gains in leveraged property and then sell when the LVRs drop very low, based on the original borrowings because only the original borrowings will be deductible against that property income. The proceeds can then be invested in higher yielding shares such as index funds which also produce capital gains and tax effective income.

 

Amen...http://www.businessinsider.com.au/forgetful-investors-performed-best-2014-9

 

The Rip Van Winkle portfolio