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and then several of us have shown that the above statement is incorrect by calculating in the use of leverage. of which you agreed. - this put you back into arguing about risk of losing 100% with property. which several of us then showed that, with due diligance and insurances, this is...

agree - i'm holding my cash in a high interest bearing account atm (6.75% on call). but that does not mean investing in property is bad - i think the timing is not quite right atm to buy. i have it on call because i do not know when the right-ish time will arrive - it might be in 6 months or...

sorry - i was reading this bit as a $250,000 property, not the $250,000 being the 80%.

okay - worst case scenario ... the investor is hopeless and stupid to boot. they buy a $250,000 property and - doh - don't spend $500 to insure the house. the house burns down. the property is now worth land value only. depending on where the property is, the land value can vary - but say...

just to use some round figures, and i'll ignore stamp duty, tax, buy/sell costs etc, and assume the rent covers the mortgage, just to keep it all simple. say you had $50,000 you can put it in the bank at 6.25% and make $3,125/yr guaranteed before tax etc or you can leverage a $250,000...