Ouch! Buying the place in cash gets you a 4.56% annual return on investment, about 5% less than just leaving your money in the bank. Just to break even on cashflow you need a massive 71% downpayment! Even putting down 50% of the purchase price requires over 3% capital appreciation just to not lose any money at all! And this is before costs such as rates, levies, maintenance and vacancy are taken into account.
1 comment:
It is obvious that it is not worth buying anything at the moment. The money is better left in a bank earning at least 10% interest. I am renting and just the interest i earn on my capital pays my rent and living expenses. i do not need to work either!I have 3 properties in the Uk that i let out and the rent goes straight into my pension fund.
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