"-average mortgage is 9% and rent is 4% so you are running at a 5% loss at the begining (hence why you negative gear)
-its not untill the debt is reduced to half of the current value of the house you break even with rent"
BG...
Agree point one, if of course you purchase a property only returning 4% at the beginning (again, there are plenty higher out there).
Point 2... you're not allowing for rental growth. What if your rental income surpasses the loan repayments? Do you think this never happens? It sounds like you think rental income received year one is exactly what it will be year 20.
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