Hi all,
In theory, say that you are investigating purchasing a property next door to a property you own. You are effectively speculating on their future value as a package. For example, the mortgage payments on a roughly 800k residential property, with rental potential of about 32k p.a. is negatively geared unless you inject about 50% equity. Surely the opportunity cost of this capital 'today' is more than what the unknown potential value of capital gains could be?
I understand this is probably a complex and subjective topic, but interested to hear people's opinions and experience (if any).
In theory, say that you are investigating purchasing a property next door to a property you own. You are effectively speculating on their future value as a package. For example, the mortgage payments on a roughly 800k residential property, with rental potential of about 32k p.a. is negatively geared unless you inject about 50% equity. Surely the opportunity cost of this capital 'today' is more than what the unknown potential value of capital gains could be?
I understand this is probably a complex and subjective topic, but interested to hear people's opinions and experience (if any).
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