the morgan stanley charts revealed - oh dear, page-24

"You don't seem to understand that the interest shortfall would have to be capitalised. The capitalisation growth is higher than the repayment rate."

I never said the interest shortfall will be capitalised - that is where you have to reach into your pocket in the early years. This money will then be repaid to you in the latter years. The other advantage is it reduces your tax today for a tangible benefit in the future.

"On avg rental return without capital gains you will definitely lose money in real terms."

Given that statement then very few if any businesses are good investments. Fact is most businesses require more cash than they earn in the early years. Given a bit of time they break even, then start actively earning money and pay back your original investment and more. To think any "average" business will pay for itself right from the start is naive and a major distortion of reality - but as I said you can do far better than the average if you are astute.