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  • cannot be serviced by net rental income

    Do they have to be? Surely plenty of people sitting on capital who are prepared to top up and keep the asset with hopes to weather the storm?

  • If I had an asset producing structurally negative cash flow I would take the equity out and invest it in something else. You would have to have huge expectations of future capital growth to make it economically rational to keep bleeding cash in.

  • Less so if you include transaction costs, and, for the smaller mom & pop BTLers, the utility cost (fluffy and vague as it is).

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