The rental income should cover most — if not all — of the property expenses, including
the mortgage bond repayments.
Not exact matches
According to a plan laid out by the Fed in June, proceeds from
repayments of Treasury
bonds,
mortgage - backed securities and other holdings will no longer be reinvested in more
bonds.
Much like homeowners who may refinance their
mortgages and extract dollars to remodel the kitchen, school districts refinanced
bonds, often securing lower interest rates, shortening the
repayment term and taking out cash.
For example, an applicant with some government
bonds can cash them in if they find themselves under pressure to meet
mortgage repayments.
I understand the power of leverage, and the wisdom in shelling out minimal cash for a deposit on a
mortgage loan whilst having the tenant's rental income service the overall
bond repayments, but when comparing the long - term returns with that of equity, is the admin and the headaches worth it?
Understanding the risk The monthly
bond repayments on an investment property are undoubtedly the biggest expense property investors face, and the higher the interest rate charged on the
mortgage bond used to acquire a property, the higher the
repayments and the greater the impact on the investor's cash flow and return on investment.