I’m big fans of Rich Dad, but here’re 2 things that I have to disagree…

Here’re the 2 things from Rich Dad that I have to disagree:-

Return on investment (ROI)

Rich Dad provides with a lot of examples showing the returns from rental properties. Here’s an example:- a unit at cost NZD 500,000, requires downpayment for NZD 200,000 (40% for NZ investor), thus NZD 300,000 bank loan at interest rate 5% pa.

Rental income is NZD 2,500 per month, Mortgage payments approximate NZD 1,500 per month (NZD 1250 and NZD 250 for Interest and Principal respectively); other outgoings amounting to NZD 100 per month.

Here’re the ROIs in the 1st year:-

Rich Dad = 6.9% pa; ErnieWong = 6.8% pa;

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