hazellend
Member of DD Central
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Post by hazellend on Jun 1, 2016 20:15:26 GMT
If a 50% leveraged property is available at 10% discount does that mean the actual discount is 5% to the total value of the property?
I.e if the shares are bought at 10% discount and the property was sold in several years at the exact same market value in a 50% leveraged property what would the profit % be?
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Post by reeknralf on Jun 2, 2016 7:29:03 GMT
If a 50% leveraged property is available at 10% discount does that mean the actual discount is 5% to the total value of the property? Yes. Bear in mind that the 50% only applies to the listing price. If the property has subsequently increased (decreased) in value, the leverage will have decreased (increased). Profit would be 10%, plus any dividends, less the fees associated with the purchase and sale.
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