fred always wanted a terrace house in paddington well he saw one yesterday that fitted the bill $300,000 on $40,000 deposit, balance anz bank @8%,30 years ground rent $15,000 pa, plus rates etc the same house sold for $600,000 a couple of months ago so fred is happy the anz is happy happiest of all is the owner of the freehold who sold the 30 year lease to fred he gets half his purchase price back in cash for reinvestment, in addition he gets $15000pa (5%) on his net outlay in 2047 he will get his house back and can sell the lease again I suppose fred could have looked for a rental property but curiously there were none around
