Comments on: Safe Investments in a Recession? http://www.lifehacker.com.au/2008/03/safe_investments_in_a_recession-2/ tips and downloads to help you at work and play Sun, 22 Nov 2009 20:40:14 +1100 http://wordpress.org/?v=2.8.6 hourly 1 By: Fast http://www.lifehacker.com.au/2008/03/safe_investments_in_a_recession-2/comment-page-1/#comment-4476 Fast Thu, 08 May 2008 09:50:32 +0000 http://www.lifehacker.com.au/tips/2008/03/25/safe_investments_in_a_recession-2.html#comment-4476 <p>Australia is soon to experience the Kevin 09 mother of all recessions. Private debt is up to people's ears and many are only just starting to drown. The Reserve Bank kept interest rates too low for too long and printed money out of thin air. Higher interest rates are now the only way housing affordabilty will return. Go Kevin!</p> Australia is soon to experience the Kevin 09 mother of all recessions. Private debt is up to people’s ears and many are only just starting to drown. The Reserve Bank kept interest rates too low for too long and printed money out of thin air. Higher interest rates are now the only way housing affordabilty will return. Go Kevin!

]]> By: Rodney Fiddaman http://www.lifehacker.com.au/2008/03/safe_investments_in_a_recession-2/comment-page-1/#comment-4475 Rodney Fiddaman Tue, 25 Mar 2008 07:18:39 +0000 http://www.lifehacker.com.au/tips/2008/03/25/safe_investments_in_a_recession-2.html#comment-4475 <p>My safety is in property. Here's my scenario: Buy one property a year for 10 years, in areas of good growth, with good tenants. You then have (roughly) a value of $3M, a debt of $2.5M & a pretty even balance sheet. If you do nothing for the next 10 years, you will have a value of $6M, a debt of $2.5M & a very healthy income. At some point you start to borrow $100k a year (each year, tax free) & retire. Your value continues to grow exponentially, while your debt growth is linear. So recessions can come & go - you don't care!</p> <p>Of course, this is the highly simplified version. For more details, check it out at aussierodney.com</p> <p>Regards,<br /> Rodney.<br /> </p> My safety is in property. Here’s my scenario: Buy one property a year for 10 years, in areas of good growth, with good tenants. You then have (roughly) a value of $3M, a debt of $2.5M & a pretty even balance sheet. If you do nothing for the next 10 years, you will have a value of $6M, a debt of $2.5M & a very healthy income. At some point you start to borrow $100k a year (each year, tax free) & retire. Your value continues to grow exponentially, while your debt growth is linear. So recessions can come & go – you don’t care!

Of course, this is the highly simplified version. For more details, check it out at aussierodney.com

Regards,
Rodney.

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