It's to see some 'real' numbers from some people with real experience for a change .
Before the experts come along and question whether your rate of return is any good , I thought that I'd do it for them .
So based on annual costs vs annual return , it's a $3489 or 1.9% before tax . Now based on the current inflation rate of 2.5% , that's $4550 plus $ 3489 so , $8039 or 4.4% . Remember , I'm not annualising his previous capital growth here as I don't have the timeframe . But for sure , the return would be higher .
So , it's making a modest return but importantly , it's making a profit .
Now let's remember that I haven't added the capital growth . There's a gross capital gain of 278k . And , it's a passive investment .
Not speaking for Smithy here , but obviously along the way , with the increase in equity he could have bought more property and therefore multiplied his returns.
Yeah , I'd be spewing if I had a nice little investment like that MF . Gee , Smithy's got a real problem there.
