Search results

@kijani Because property investment in my calculations is leveraged. 100k cash can buy 500k property with 12% down payment and other initial expenses.

@floraspec Thanks for the suggestion. By my rough calculations in Excel, 14% returns from ETF will match 4% from property for 100k cash investment and 10-year time horizon. I don't know which one has the better odds of eventuating, but I like the flexibility and diversification benefit of ETFs.

@kijani The gap between rental yield and loan borrowing rate is ~1-2% The gap between ETF Dividends and NAB EB rates can easily be 5% or even more for growth focused dividends. I have never used NAB EB but I've read that IO loans on NAB EB are much harder to get. My cashflow will be smashed...

@kijani Margin loans rates are currently at about 10% and margin calls are scarier than a property price fall.

@love2fly Say, a detached 4 bedroom house in a new estate in Melbourne, Brisbane, Adelaide or Canberra

I am calculating potential returns for a 10 year buy & hold investment of an ETF vs IP. Due to the leverage, 4% growth in property beats 8% of ETF after all expenses taken into account. Is it reasonable to assume 4% property price growth over next 8-10 years for a new build in Australian...