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| How does it work ? |
We all remember in times
of high inflation that you could make a profit on mortgaged
property because real rates of interest were negative (i.e.
the house was always appreciating at a higher rate than
the cost of money).
The rental secret is similar: an investment of a fixed sum
in an appreciating asset, but this time the cost of of the
money is underwritten by rental income.
Psst ! Did you notice that we were being cautious
about rental incomes ? We have not allowed for them to rise
at the rate of inflation, even though they probably will
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