WHO GIVES A **** about the details? I keep asking why you say that just because you don't believe his posts in their entirety (I don't either) you can totally ignore any of the risks he speaks about?
I will ask again: How does a fully leveraged property investor survive years of no growth? If you insist on using the +ve CF argument, explain how it is CF +ve. Is it because the return on your own equity is greater than the loss on OPM? Think about this because I think it is critical. If buying a property on 100% LVR isn't CF +ve in year one, it still won't be in five years time if values flatline and rents reflect the malaise which caused the flatlining in the first place.
Hi Sunfish
Let's see if I've got your question right,
I buy a $500000 property borrowing $525000(incl. costs) how do I survive 5years of no growth in both equity and rental income.
I'm fully leveraged into the property and it is not CF+
I could survive by having 1 or a combination of the following happening
-a cash buffer to cover the shortfall.
-income exceeding wages to cover the shortfall.
-liquid assets such as stocks to cover the shortfall.
-dividends from stocks to cover shortfall
-promotion, increasing my wage to cover the shortfall.
-taking in a boarder in my ppor to cover the shortfall.
-renting out my ppor residence and boarding cheaply to cover my shortfall.
-Taking a 2nd job to cover my shortfall.
I could keep adding to this list and no doubt others could add more ideas.
Although I strongly agree with you that if people want to post opinions they should be willing to answer questions relating to those opinions whether they are bulls or bears or anywhere in between.
Cheers
Pete