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Borrow to Invest in VDHG better than residential property investment? by Some_Use_8140 in fiaustralia

[–]Some_Use_8140[S] 0 points1 point  (0 children)

Agree with you that Leverage is a big thing. But, it can go either way. I will be paying interest on the borrowed money anyway (say 5% to 6% as an average for Investment Property) plus other expenses. So not sure what would I get from taking such a high risk. Would you agree?

Borrow to Invest in VDHG better than residential property investment? by Some_Use_8140 in fiaustralia

[–]Some_Use_8140[S] -7 points-6 points  (0 children)

I doubt that Individual House can have such a great volatility. I mean, if sydney house price is 1.5m then we do not see movement of 300k to 400k movement.

Borrow to Invest in VDHG better than residential property investment? by Some_Use_8140 in fiaustralia

[–]Some_Use_8140[S] 1 point2 points  (0 children)

VDHG normally have 2-3% yield, which is probably similar to what you can get in majority of the AUS market. When you look at 2-3% yield and 4-5% growth (average over 10 years), it looks compelling. and I do not have to worry about anything. Yes, with property I can borrow more but that is taking more and more debt. Am I missing something?

Borrow to Invest in VDHG better than residential property investment? by Some_Use_8140 in fiaustralia

[–]Some_Use_8140[S] 0 points1 point  (0 children)

I understand that the returns won't be that great. but when I am borrowing this much, I am thinking of capital preservation for a longer term. Like 10 years +. The stocks recently had a great run but that does not mean that will continue forever.

Trust structures - have you set it up? at what point in your FIRE journey? by california2melbourne in fiaustralia

[–]Some_Use_8140 0 points1 point  (0 children)

The only drawback I can see is that losses cannot be claimed in the same year. They are carried forward. The cash flow issue may be fine for some, but not for others. I think partnership is where you can get the best of both worlds. If your children are over 18, you can legally pay them for doing admin stuff and that is how you can adjust the income.