If I brought a house (not in Sydney) for $100,000 dollars my own money and I got $10,000 rent (after expenses) in the first year. I made 10,000 from 100,000 (10% profit).
If I borrowed $90,000 to buy the same house. My $10,000 making $10,000 from rent, would mean a 100% return on my investment. Have to allow for interest on the loan somewhere but anyway...
Leverage helps get greater return!
CNP Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
