[quote=pri_dk]5% annualized return on an investment that is leveraged 5 to 1 is very good.
But then you gotta factor in the cost to finance, cash flow from rental savings, taxes, etc. (so now we have to be more precise, but I don’t want to bother…)
Polly not a bad investment though. But not as good as it might sound at first.
But leverage works both ways. Many forgot that fact over the years, but learned it the hard way recently.[/quote]
pri
If someone offered you the chance to live in a property with a carrying cost equalivalent to rent and told you it came with a big tax write and you would get a $300K return after 10 years would you consider it “probably not a bad investment” or a great one?
