Have been through the case studies in the Buyer Beware Book. (SO GOOD) and even though I stuffed up on the catagories of some ofthe expenses etc, upon checking the answers would I be correct in saying that CASE 1…..Ajax St, the best is the Variable P&I 80%LVR.and at a COCR of 3.52% this is less than bank intrest rate. so other than the fact that the property might have great capital gain potential I would not onvest in that property and, of course, none of the others as they return less. Am I on the right track.??????
As for the Cairns beach resort.I believe at an ANNUAL CASH FLOW OF -$3067.00 (takeing capital gain potential aside) I would not invest in that either Would this be correct ???
Hi Brownbear
You have hit the nail on the head…..Why would you invest in a property that would not give you a return better than the banks which would be considered less risk as well.
Also, this one is for you Steve….If you have a look at the Cairns Beach Resort case study solution, it appears as though the figure of $400 for other mortgage setup fees has been left out of the calculation….Please correct me if I am wrong…If I am right, this could be a little confusing for some people.
Kind regards
MagnumPI [biggrin]
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