Same deal, two ways to pay for it. Compare your own capital, your cash flow and your ROE paying cash versus financing with a mortgage. Results update instantly; nothing is sent to any server.
Own capital = total investment − loan. Cash flow = income with vacancy − expenses − mortgage payment (€0 for a cash purchase). ROE = annual cash flow / own capital.
Here's how your own capital, cash flow and ROE change depending on how much you finance:
| Financed | Own capital | Cash flow/mo | ROE |
|---|
Want to understand why more debt doesn't always raise your ROE?
📚 Academy Level 4: Debt and leverage