property purchases speculating not investing, page-67

  1. 460 Posts.
    I of course understand that B.G, and presuming based on a .5% increase in inflation was passed on by a .5% increase in the interest rate to 9.5% the total interest payable would only increase by $31k over the 25 years

    Its all to pie in the sky to get exact. Using the past historical averages of the last 25 years however

    Inflation rate 3.84% and interest rate of 9.89% would result in

    Cap gain: $769k less $300k = $469k
    Interest expense: $510k

    Result $41k shortfall....

    Not to bad at all really considering....
 
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