What is your backup plan??

@Peter_Tersteeg got what you meant now. Thanks mate.

 

That's the problem with looking at alternate investment strategies to property. There really isn't anything else like it, which is why it's so popular.

Property is generally considered a very save asset class, assuming it's held over the long term. It can be generously leveraged and there's potential to directly influence the growth and yield individually.

It also has the highest taxes of any asset applied to it (stamp duty, rates, land tax, income tax, capital gains), high holding costs (management, maintenance), there's little scope to use creative ownership structures to reduce taxes, and liquidity is very poor.

If it wasn't for the low risk profile of property, combined with the leveraging ability, you just wouldn't bother.

 

@Peter_Tersteeg i hear what your saying mate. I agree the generally lower risk with leveragability makes it attractive somewhat.


But for me, I don’t think I could just sit around waiting for CG...Probably one if the best things i like about property is the ability to add value in various ways to create equity much, much faster. If you’re using a value adding strategy to manufacture that equity, then sell or refinance, it really becomes a business rather than just pure property investment, And with a property business the opportunities are endless really.


Just my feelings on it.

 

Completely agree @Leo2413 the ability to add value for captial gains and yields is a big attraction to property and it's hard to find something else that you can do that with as easily.

If it weren't for property, I'd be investing in shares, but in my opinon that's a very distant second choice, probably something I'll do later when I move into a different stage in my life.

I've also ignored the business asset class. Very, very risky but when successful it can far outperform anything else. Over the past 10 years my business has far outperformed any of my properties in terms of growth, and the cash flow is better by anything I ever expect to achieve in my property portfolio. The first 3 years were also very bleak and we got very close to going under at least once.

 

Thats awesome mate. Love stories like that. Inspiring.

 

CFD's do exactly that, some can have a very low deposit and you can also guarantee your total risk amount via guaranteed stop losses. Very handy

 

@Jess Peletier thanks jess!

I know which broker i'm going to when i'm ready for Perth.

 

@Jess Peletier do you do commerical lending?

 

@Leo2413 Yes, but more experienced with resi. Commercial lending is an area of interest to me so will be actively expanding into it this year.

 

Sounds good @Jess Peletier Thanks again.

 

Possible to get part-pension...have not looked into it. But you can't have any other assets other than PPOR

But in anycase the next budget is going to close a lot of the loop holes.

 

correct...was saying 4.5% ....at 60....but I think you can also do the transition to retirement from 55....

 

True. In time they are going to require that people are paupers before they get the pension.

 

Lot sooner...next election I reckon...tightening up with retirees as the govt sees a new honeypot...and the raising of the GST. If thye don't get it to 15% watchout for the dirty tricks via sneaky backdoor taxes.

Morrison...is shifty as they come...look at what he did with the refugee policy...in my view the Australian public overall is pretty stupid. They don't analyze the underlying cause and affect. All they care is about their hip pocket. ...so if there is a slick sales job they will buy.

Kind of like investors being two-tiered marketed to....lot so Bogans out there who just cannot work out that the govt will not work in their interests. They need to watch and keep the pollies on their toes...

 

@sash overall i agree with you mate. And i wouldn’t trust Morrison for a second.

Get this. I know someone who lives alone in a 4 million dollar home bought many, many years ago. Struggles to live weekly on the pension and often complains about it. Lives very frugally because no money really. No family. Many have advised him to sell the home, downsize and he will have amazing cash flow and options. He completely and totally refuses to sell as he said he doesn’t want to lose the pension......


I wanna bang my head agasint the wall till it explodes....

 

Ppor value should have featured in the pension calcs years ago.

 

.
@D.T. all I know is having investments for a comfortable retirement, if it hasn’t been essential in the past, it sure as hell is gonna be now in my opinion

 

Always has / will be, but some ppl are happy to coast through life and assume entitled to stuff at the other end.

 

Never did understand it myself ...but thats life. I think the young generation are even worse imo. Entitlement galore its not even funny.

 

Not just young people. Even in my parents generation (early 60s) people have the mentality "we've worked our whole life we should be entitled to something now". And most have zero to show for their 40+ yrs of work.