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Ahhh you know what? When you have a massive mortgage out (say 90% LVR) and you throw money into equities, you're as good as playing with margin lending, except that this time the banks won't force-sell you, exposing you to even more danger.

Analysis Oh ok, so basically you stumped up around $25.5k yourself and borrowed $252k. Net cash inflow pre-interest = $15k. Interest = $17.5k. Net cash outflow of -$2.5k. To earn 5% ROE (ie 1.275k / 25.5k = 5%) you'd need a return of $1,275 pa. Since you're down $2,500 you'd need $3,775...

Hmm interesting just looking at property 2. Just randomly selected it. $250k, $340 rent. Stamp duty of $12k? So say you are 90% geared (I'm assuming high gearing). I'll assume you paid the stamp duty. So you put in $37k cash. Let's say $1.5k all other fees. I'll call it $40k all up in...

I have no qualms with gearing, but gearing on negative cashflow means the only thing you rely on is capital growth. If all minds thought like you, we'd be in genuine bubble territory. - Have you factored in downside from losing your job as a result of double dip US recession? - Have you...