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If you'd leveraged your FTSE 100 investment at 75% you'd have done even better...
Well, yes, but can you even get that sort of borrowing?
And like your reinvested dividends my fictional investor could reinvest their rental income.
Hefty-
BTL debt has personal recourse so from a risk perspective it’s the same as clearing out the offset account on your primary residence to buy equities. Or portfolio margin loans (which do exist).
At current rental yields there really isn’t very much rent left when you take maintenance, voids, interest and taxes into account.
NickCJ
Taking on personal recourse debt is never zero risk
If you include reinvested dividends (you aren't going to throw them in the sea) it's >100%. If you'd leveraged your FTSE 100 investment at 75% you'd have done even better...