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  1. Graemsay

    The next 10 years: Prediction of the market

    If you're looking at gross rental yields of 4.5% against borrowing costs of around 5%, then that suggests to me that it's fully priced. Knock off management costs (Trey is off surfing and working, so that would be a necessity), maintenance, and voids between tenants, and the net yield might...
  2. Graemsay

    The next 10 years: Prediction of the market

    On the face of it, affordability in the mid eighties at an interest rate of around 15% on a loan of 2.5 times income would be broadly similar to a loan of 6% at 5 times income. So: $250K at 15% over 25 years is $3223 / month. $500K at 6% over 25 years is $3259 / month. But inflation was much...
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