media trying to pump the property market, page-5

RT....

I hear the.... "stick your money in the bank" argument and it has some merit but not a lot..

Remember to compare apples with apples.

What would u prefer.......??

I will use 8% interest rate with 8% retruns p.a and a low $300 week rent return.

8% return on a $500k house 90% LVR ($40k)
take out $36,000 for repayment.....and $3000 for outgoings
leaves my investment about square.

Say e get $300 week rent.....

$15,600 year return on my $50k investment.

......................................................

Or I can stick my $50k into one of the 8% return p.a the bank offers.

8% return on $50k

$4000 p.a.....and you pay tax on it every year.

And you have no asset other than $54,000 less tax in the 2nd year to invest.


cheers