creeping up to 1.70s?, page-392

With you in all respects except property Tigs. We have half our share portfolio in our names to live off the dividends for now and the other half in our SMSF in which a2 is the largest holding at the moment.

Personally we sold all our properties and invested fully into shares years ago and have worked out to make the same net return on property taking into consideration franking credit benefits we would need to have 8 times the value of our share portfolio in property to make the same return with all the extra hassle it entails. We have our own house paid off and my wife inherited a older house but on a large block in inner Melbourne.

Take that house for example, that land alone is worth over $1m but because the house is old small and dated we get $500pw in rent. Take out land tax $3800+, rates $3800, insurance and utilities $2500 and factor in $2000 year average in repairs because some years its small and others large equals $13900pa - 30% tax leaves you $9700pa or a measly $187 pw. Even though we got it for free, if we knocked it down to put two luxury townhouses we would still be better off to invest that amount in FF shares.

Any way you look at it shares beat property every time and the rate of capital growth we have had in property wont repeat itself like it has for the last 10 tears for a long time to come.

My head says to sell it but her parents last wish was for the land to stay in the family and not to line the pockets of the real estate agents or add to the government coffers by selling it so we will respect that wish even though financially we could turn that into a $120k income stream.

Other than a roof over your head real estate is so expensive now its the only money you should have invested in that class and the rest should be in shares or something else that bring in a income.

Good lucky with your path and hope listening to ours gives you another view point to compare it too, we are nearly 20years older but in a good place financially especially being mature age parents it takes a load off your mind so we can both be stay at home parents to help each other out.

Regards Smuglex.