The Barefoot Investor

Well, owning your own home is like a 30-year forced savings plan — and any gains you make over that period are tax free.

While some people argue that rent is dead money, so is paying interest to a bank. And over a 30-year mortgage you’ll spend more money paying interest to the bank than you paid for the original cost of the house. And when you add in stamp duty, legal fees, wear and tear and sel...

do your own research based on recent sales in the local area.

making extra repayments on your mortgage is a guaranteed return.

The government understands that the future is going to be expensive — that’s why they bribe you with tax cuts. If you’re earning $80 000 a year, you can slash your marginal tax rate by more than half by diverting money to super!

property has doubled every seven to 10 years over the past 24 years — but not when you factor in inflation, interest costs, upkeep and maintenance

When it comes to buying an investment property, the interest you pay on your borrowings reduces — and, in many cases, totally eliminates — your rental income.

you can make the same argument for borrowing to invest in shares as you can for borrowing to invest in property — in both cases, the interest you pay the bank reduces (or eliminates) the amount available to you to reinvest and compound over time. Therefore, if you can avoid de...