Somewhat different for residential home as investment return vs. stock portfolio is that for stocks once we sold for investment return; it is not necessary we need to find replacement. But for home, we will need replacement. After discounting the cost of replacement, likely to a few % below 7.8%
Cannot cheat lah. Rental (whether you rent from landlord or pay upfront with downpayment and front weighted installment) cannot count as cost of investment.
It is separate and distinct category.
The question is whether can it be counted as cost of investment if you pay it as a rental for a child living space?
No?
How about rental costs for dormitories for workers in your business (company)?
Then
How about rental for yourself with yourself as an asset? An asset with hopefully growing profits but with a shelf life?
Cannot cheat lah.
ReplyDeleteRental (whether you rent from landlord or pay upfront with downpayment and front weighted installment) cannot count as cost of investment.
It is separate and distinct category.
The question is whether can it be counted as cost of investment if you pay it as a rental for a child living space?
No?
How about rental costs for dormitories for workers in your business (company)?
Then
How about rental for yourself with yourself as an asset? An asset with hopefully growing profits but with a shelf life?
To really know the real investment return, property investors to do proper book keeping. LOL!
Delete