Said in a reply to another thread, houses renting for 300 a week are available for under 250k in Brisbane's west. So, the question - is an investment house strategy going to be more profitable, over say two years, than 250k invested in the ASX 200. Credible predictions suggest flat to 8% increase in prices in Brisbane's west over the next year. I am confidant a portfolio of franked dividend producing companies in the 200 will yield better than 10% in the next year.
I'm not sure how to work it out, hence the question. Big factor in trying to work it out, is the difference between interest rates on a home loan against interest rates on an investment/margin loan.
My personal circumstances are actually on the wrong side of the question, I am keen to liquidate a rental to buy a serious motorhome. I could liquidate just enough shares to get the cash but my preferred option is to sell the rental and park the money in the market, then spend only the cash needed for the motorhome.