Tcisboss wrote.. "Where do you live bolide, at home with mom and dad, becaUse your not paying any rent that you have factored in. Or tax on your interest, kind of easy to make anything look good when your got the bear blinkers on. Especially when the boomers which are much derided are footing the bill at home for you".
My scenario above and calculations on an investment property factored in rent received from that investment property.. and you're $20,000 p.a. better off with money in the bank earning interest., vs borrowing $200,000 to invest in the $400,000 property.
As far as my personal situation - I own my home plus some properties (I bought most of my properties during the 5- 6 year property slump in the 1990's). Timing is important. Buying a property now vs saving and money in the bank - you're clearly better off with money in the bank in a flat and declining market - with interest rates on the rise.
Tax on your interest is better than losing on property right now - and if you make a profit with an investment property aren't you going to pay taxes anyway ?
I'm a property bear right - but I've never been negatively geared .. so I've always gladly paid my taxes.
