"Or this. I borrow to buy, you rent my house you pay the mort gage though your rent. I only had 10% say $50k of 500k purchase. The house only goes up by inflation let's be fair and say 3%. In ten years the house is worth 672k. I invested 50k. But now have 172k in equity that is over 16% year on year for 10 years on my 50k investment. Not to mention rent increases that you pay."
And lets be honest with this, if you only see 3% P.A increase you will have lost. The rent wont cover the mortgage difference so you will be negative gearing which means making a loss each year + rates + repairs... If you sold it after 10 years you wont make much if anything at 3% against what you put into it.
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"Or this. I borrow to buy, you rent my house you pay the mort...
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