negative property sentiment, page-116

  1. 1,508 Posts.
    "and $10,000 buys a $100,000 property investment

    and $10,000 gets you how much in shares?


    I assume you're talking about a $10000 deposit to buy a $100000 property...
    How much do you pay to buy that property [stamp duty, loans setup, transfer costs, settlement fees, title searches etc etc] and how much do you pay to own that property for a year?


    I can justifiably add that plethora of costs to the share side of the comparison [because the share buyer doesn't have those outgoings!] Would another ten thousand dollars be in the ball park?

    therefore, you'd have $20000 in hand with which you could buy a $100000 portfolio of, say, ten blue chips at total brokerage of about 2 hundred bucks on a diversified margin loan which costs zero dollars to set up. And zero dollars to own for the year.

    then in the second year, you fork out another 5 grand for ownership, while the share investor adds $5000 to his portfolio.... and so on.

    So, in the first year, your $100000 property has to make ten grand to break even, the shares have to make 200 bucks.

 
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