Totally agree NurseryWay I see the current situation with CER is...

Totally agree Nursery
Way I see the current situation with CER is as follows:

You have purchased your house for $600,000
You have financed your home by up to $390,000
Equity $260,000 (deposit 35%, borrowed 65%)


(65% LVR is similar to CER's LVR at present)


You rent out your home and earn $60,000 per year. That's 10% of the value of your home.

(CER estimated NTA $1.30, estimated distributable income per year $0.13. Thats the comparison)


Total interest payments on your home are only 40% of that of rental income.

Cost of debt per annum is $24,000

(Remember if you looked at my spreadsheet, you will notice that US interest payments only are about 40% of that of rental income)


However, someone is only willing to offer you 3.4% of the net equity in your home

That is $260,000 x 3.4% = $8,840

(CER currently at 4.5c. NTA $1.30)


An absolute joke if you ask me.

CER's assets are as good as any if not better than any other revenue generating assets going around at the moment.

They are resilient in this sort of economic environment

Cheers mate