Quote:
quote:Originally posted by duncan macgregor
The idea with property is to borrow let some other mug pay it off. macdunk
I keep hearing this. At 4% yields (or negative yields for a residential coastal section) how does the mortgage interest get serviced, let alone paying off the loan? How would this even happen at 8% yields? I think most property stats live in a fantasy world where cashflow, capex and tenanting problems don't exisit. I have plenty of friends crowing about they $x00,000's gain they made on this or that property, conveniently forgetting the costs of purchasing and deposits, x000's in improvements, x years of negative cashflow and uncounted hours of personal labour. Rent is dead money? What is interest, labour and capex?