nuts and bolts, i was referring to our current approx 7%...

nuts and bolts, i was referring to our current approx 7% interest rate.

Property purchased around 3 years ago for 350-400k, current conservative price = $520k

Lets say 10% deposit so ruffly $320k times 7% interest to bank = $22,400 plus incidentals and body corp

Current rental is around $20,000 -$23,000 ie close to neutrally geared. Current actual renting time for the kind of apartments i am desciribing in melbourne take around 1 week to rent out. One right next door to one of my investments took 4 days and got $400 a week and wasnt that great internally.

That said, i do agree that there are risks such as increases to global interest rates but i dont see that happening soon.

Also great GDP and unemployment figures in austratria recently, still have shortage of accomodation. What will the picture look like in 5 years? i dont know, i guess we all have to make our bets and stick by them.

Some back of the envelope calculations would suggest if you by an investment rather than a PPR at current rates and have a MTR of at least 38% then you only need growth of 2% or below inflation to break even or not lose money down the track.