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Correct, risk comes with any investment. But the risk is highly amplified when one is leveraged beyond the value of the property to begin with.

I see your point but let's also say that your tenants leave half way through the year and the property value decreases or is stagnant throughout the year. It's a gamble, not investment

Likewise mate I didn't mean you in general but just used your write up as an example as it is the first one that jumped at me. My point is that in investing one has to put some capital in to begin with. So forcing this portion of the investment to be calculated within a 105% loan calculation...

Sure but it will cost you in interest. In investing the main purpose is to nurture and grow the capital you initially invested. So with a 105% loan you are not actually investing anything but spending your own money to pay for purchase costs / lmi just to get a title (even worse - spending...

Howdy The properties mentioned are well CF+ even with the 105% calculation you have outlined. Point was that I would never borrow that much these days due to all of the extra and unnecessary costs associated with it. In regards to calculations I see it like this: - My own money...

Why would you buy at 105%? You have to go quite a few steps backwards before you even get back to 0. I have a few positive ones in Melb CBD (3000). They are either: - fully furnished, or - short term rentals All were positive from the start with 80% finance.