steve is right on the money.
its simple really, rent less interest less rates = net income. if this is negative (in the majority of cases it is) then you must rely upon capital gains to cover the difference. and to ensure you are calculating a "real" return economically speaking, this should be AFTER inflationary costs.
now if you disregard inflation, no problem, but basically you may have more money, but not more wealth.
- Forums
- Property
- Is there a housing bubble that’s about to burst in Australia?
Is there a housing bubble that’s about to burst in Australia?, page-274
-
- There are more pages in this discussion • 63 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)