Benny,

You’re quite right, it was Steve’s “Multiplication by Division” article in the May 2004 edition of Insider (on this website) which sparked my interest and my first post in this series. On reflection, I should probably have mentioned this to all so they could read the article first.

I agree with you there is no point going liquid if you…[Read more]

Monopoly,

I take it then that what you are against is selling an appreciating asset in favour of buying cashflow-positive properties ie you subscribe to the “never, never sell” philosophy?

Regards,

Michael

Derek,

Many thanks for your comrehensive reply. I will keep the Manly property and use the leveraged equity to purchase cashflow-positive properties. That way I will have a mixture of growth and cashflow assets.

Regarding depreciation, there may have been some confusion. The Manly property is more than 40 years old, so I have only been…[Read more]

Derek, Yack, Terry:

Many thanks for your advice and concern regarding my query as to whether to sell my Manly property. I agree it is a good long-term investment. It may be, however, that we see no appreciation in the next three years. If this is so, even taking into account all the costs of sale (and purchase of another property), it may make…[Read more]

Martin,

I work on yachts in the Med.

New Zealand does sound like it has some fantastic opportunities, though I heard you can only generally borrow up to 70% of the value of the property. I think interest rates on loans were higher too. Can you confirm?

I found the answers to my question re CGT on the ATO’s website as follows:

“capital losses…[Read more]

Martin,

I used to live in Australia and acquired Aus citizenship. I like it in Australia and know the market better there than any other country – that’s my only reason.

Do you know of better places to invest in property? I saw some posts mentioning Canada.

I also saw that Steve McKnight is investing offshore. Do you know where? Do you know how…[Read more]

Dear Yack,

I only get 29% back from the taxman (see my reply above to Brisbane 04 (Martin).

What do you mean by “ve+ properties”?

Have you read Steve McKnight’s book? I ask this because you seem dead set against his philosophy.

I confess to not having read any of Peter Spann’s books, but I believe he takes the opposite view to Steve, namely…[Read more]

Dear Martin (Brisbane 04),

I pay tax at 29%, however much I earn, as I am a non-resident. On the other hand my Australian income is taxed from the first dollar ie I have no tax-free threshold nor lower bands of taxation.

So I believe my figures to be correct. I am just hoping I can find someone to confirm I have done the calculations…[Read more]

Thank you all for your help and especially to Pete who provided a clear explanation of how serviceability works.

I am still puzzled as to how Steve McKnight managed to keep on borrowing so much with so much of his cashflow being passive, ie not from a salary/his own exertions.

Michael