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IMO
1. Run conservative LVR's (<40%) (I typically run less then 30%)
2. I see no sense in making a loss and "hoping" for a CG to compensate, the market could be flat for years (but then it might not be ) You can still claim your interest payments as a tax deduction and assuming you are on a tax rate of 30% and you have fully franked shares, then your franking credits credits should cover tax on the dividends ( I see Mr K Henry is advocating we remove dividend imputation altogether, so who knows what will happen).

I would be ensuring I was positively geared (div's are falling so watch the calcs there), also helps if you do lose your job, as the dividends pay the loan and you get the franking credits paid to you as a tax refund... lots of low PE, high dividend paying stocks with the "potential" for CG, work with those

3. Use your existing shares as equity but remember they can sell them out from under you if you get a margin call. See note 1 above.

or consider buying a house, using the FHBG and renting a room out for extra cash to pay it own more quickly.

Best of luck to you...

<blockquote data-quote="Trevor_S" data-source="post: 402454" data-attributes="member: 21542">IMO 1. Run conservative LVR&#039;s (&lt;40%) (I typically run less then 30%)2. I see no sense in making a loss and &quot;hoping&quot; for a CG to compensate, the market could be flat for years (but then it might not be <img src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" class="smilie smilie--sprite smilie--sprite8" alt=":D" title="Big Grin&nbsp; &nbsp; :D" loading="lazy" data-shortname=":D" /> )&nbsp; You can still claim your interest payments as a tax deduction and assuming you are on a tax rate of 30% and you have fully franked shares, then your franking credits credits should cover tax on the dividends ( I see Mr K Henry is advocating we remove dividend imputation altogether, so who knows what will happen).&nbsp; I would be ensuring I was positively geared (div&#039;s are falling so watch the calcs there), also helps if you do lose your job, as the dividends pay the loan and you get the franking credits paid to you as a tax refund... lots of low PE, high dividend paying stocks with the &quot;potential&quot; for CG, work with those3. Use your existing shares as equity but remember they can sell them out from under you if you get a margin call. See note 1 above.or consider buying a house, using the FHBG and renting a room out for extra cash to pay it own more quickly.Best of luck to you...</blockquote>

[QUOTE="Trevor_S, post: 402454, member: 21542"] IMO 1. Run conservative LVR's (<40%) (I typically run less then 30%) 2. I see no sense in making a loss and "hoping" for a CG to compensate, the market could be flat for years (but then it might not be :D ) You can still claim your interest payments as a tax deduction and assuming you are on a tax rate of 30% and you have fully franked shares, then your franking credits credits should cover tax on the dividends ( I see Mr K Henry is advocating we remove dividend imputation altogether, so who knows what will happen). I would be ensuring I was positively geared (div's are falling so watch the calcs there), also helps if you do lose your job, as the dividends pay the loan and you get the franking credits paid to you as a tax refund... lots of low PE, high dividend paying stocks with the "potential" for CG, work with those 3. Use your existing shares as equity but remember they can sell them out from under you if you get a margin call. See note 1 above. or consider buying a house, using the FHBG and renting a room out for extra cash to pay it own more quickly. Best of luck to you... [/QUOTE]

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