Hi Bill. Thanks for your comments but actually I did refer to that in the first point regarding dividends in relation to “poor hubris driven investments”. Regards Shane
Hi Michael. Thanks for your comment. Regards Shane
Hi Lyn. In terms of the 8% ...I am not a tax expert but for most taxpayers their franking credits would be well below their taxable income so for a fund with a lot of accumulators franking credits will still be received in full as now. Regards Shane
Hi Brian. Sorry I can’t comment on the AMP share price. Regards Shane
Hi Peter. I would assume that would be the case..but would need to see what a new ALP Gov says if they win. Regards Shane
Hi Will That’s the trick. Those that do are rich!
Hi Gregary True but there are two complications: In history booms or more specifically bubbles get defined by their busting..if they don’t bust then they don’t get defined as a bubble no matter how much their prices went up. Secondly the busting can occur via a long period of weak prices - so they end up falling in real prices or versus wages say but without necessarily crashing in nominal terms. Aust home prices arguably did this from the mid 70s into the mid 90s. Thanks for your comment. regards Shane
Martin - If you save it does.
Hi Tristram Lots have asked me that. I used to be able to in the AMP Plaza. My soy and linseed roll with cheese and tomato only cost $5.30...but it got closed for a rebuild in November and I have been making my own because everywhere else had rich gourmet sandwiches. I think sandwiches in service stations are still around $5...anyway I take your point. $10 a week won’t buy much regards Shane
Hi Alex Thanks. They are consistent and start with the same price data. The final chart relates to total returns. Its based on the same nominal home price data that was used to derive the real price line in chart 3 (yes it is 3% real pa). All I have then allowed for is a compounded rental yield (which used to be much higher than it is now) and allowance for the costs of maintaining an investment property to give a net return index. I don’t have the data in front of me but its something like: 3% real price gain+3% inflation+7%yield -2%pa =11%pa (averaging over the whole period since 1926)