answers for pennyo, page-78

Pennyo

Lets assume the single person av wage nett is $40k

They go and buy a house for $400k 1:10 at 8% p.a

400k at 8% p.a = $32,000 p.a

Leaves $8000

rent out 1 room at $150 week as they have 3 rooms.

$8000 plus $7800 = $15,800

leaves $300 to live on per week

...and not paying rent.


Alternatively....

rent a one bedder unit at $300 week and have $315 week left to live on 32,000 less 15,600 (rent).


Which would you prefer?

$300 week and your own place
or $315 week and renting?

is the above not based on your 1:10 scenario?