I have just been reading your post comparing 4.6% yield for property against 8% for bank bills. That is very misleading because you are not comparing apples with apples.
Take a $450k property: • Deposit (@ 10% =45k) and Buying expenses (18k) = 63k • Rental Income = 20k • Expenses = 41k • Taxation Effect = 8k • Net Income = -12k • Capital growth at only 5% = 22k • Overall Wealth Increase = 10k
63k (that’s all that was invested in the property) invested in bank bill @ 8% = 5k
This is the picture for the first year, over 5 years the equity growth from the property would be over 70k and that’s at only 5% growth when we know from history that it is more likely to average 10% .
Over 5 years your investment in bank bills will have grown by 20k.
