Property investment simulation
I created a simulator based on price, loan paydown, market value, profit on sale (including RPGT) and compared against using the same cash outlay into FD or investments.
Running the 2 investment options against each other, while property wins in the long run, the returns actually flatten out over a long period of time because a cash investment (e.g. even at the safest asset class which is FD) gives an ever growing rate of return while a property's value growth slows after 8 to 9 years!
That explains why mortgage portfolios price their rates on an 8-year longevity.
Here is the final result of the simulation with the RPGT in place means that while you are better off holding in FD for 5 years, your maximum return is within the 7-9 year window before the property value growth begins to flatten:
Running the 2 investment options against each other, while property wins in the long run, the returns actually flatten out over a long period of time because a cash investment (e.g. even at the safest asset class which is FD) gives an ever growing rate of return while a property's value growth slows after 8 to 9 years!
That explains why mortgage portfolios price their rates on an 8-year longevity.
Here is the final result of the simulation with the RPGT in place means that while you are better off holding in FD for 5 years, your maximum return is within the 7-9 year window before the property value growth begins to flatten:
So you would break even at year 5 and have to hold for a few more years - up to 10 or 11 if you want to cash out more but that's up to you.
update: Some anonymous reader left a 'lovely' one liner in the comments saying 'who cares loser'; which seemed rather odd to me because he (usually it's a guy) obviously cared enough to leave a comment? Ah well, maybe you can go write your own blog lor then see who cares or doesn't care..
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