$800K - what was the stamp duty on that purchase price - $20-30K!! If he borrowed 80%, i.e. $640K loan at 7% I/O repayments were $44,800 p.a. - less agents commission in selling at say 2% of $1m = $20K plus advertising costs- he probably did not make much, certainly not a 20% return!!!! in net terms - better investments elsewhere!??!
