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From: Samuel Riley
heres a true to life ROI story that may help open your mind.
My girlfriend wanted to get started in property now at the moment the govt's stamp duty exemption and first home owners grant make it very attractive.
Apartment cost= $129,000
Deposit@ 5% = $ 6,450
Legals etc = $ 600
Stamp duty = $ 0 (govt exemption)
Total cost = $ 7,050
Government gives first home owners $7,000
So the apartment cost $50
Now if it goes up 1% ($1,290) that is over a 2000% ROI. now what is 7 or 10% growth ???
Some of you might be saying "wheres the LMI on a 95% LVR, well a good broker will get the LMI built into the loan. which in this case makes it a 97%LVR
Now admittedly this case is only applicable in first home owner cases. but the govt does not give you $7,000 to buy shares and it doesn't give you tax exemptions either. Oh yeah and the bank wont lend you $129,000 to buy shares with only $6,000 in assets.
So in this case property was far and away a better investment choice then shares. The reason Leverage.
I'm not against having equity in shares but you have to be open minded to all the opportunity's that exist across all markets.
Get to it
sam
heres a true to life ROI story that may help open your mind.
My girlfriend wanted to get started in property now at the moment the govt's stamp duty exemption and first home owners grant make it very attractive.
Apartment cost= $129,000
Deposit@ 5% = $ 6,450
Legals etc = $ 600
Stamp duty = $ 0 (govt exemption)
Total cost = $ 7,050
Government gives first home owners $7,000
So the apartment cost $50
Now if it goes up 1% ($1,290) that is over a 2000% ROI. now what is 7 or 10% growth ???
Some of you might be saying "wheres the LMI on a 95% LVR, well a good broker will get the LMI built into the loan. which in this case makes it a 97%LVR
Now admittedly this case is only applicable in first home owner cases. but the govt does not give you $7,000 to buy shares and it doesn't give you tax exemptions either. Oh yeah and the bank wont lend you $129,000 to buy shares with only $6,000 in assets.
So in this case property was far and away a better investment choice then shares. The reason Leverage.
I'm not against having equity in shares but you have to be open minded to all the opportunity's that exist across all markets.
Get to it
sam
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