You are considering to buy a property worth $2 million. You are required to put down 30%, i.e. $600K and take a loan for the balance of $1.4 million at a fixed rate of 5% over 30 years compounded monthly. The annual rent is $100K and the total expenses are $25K. Both rents and expenses grow with an annual rate of 2%. Assume that the property appreciates in value at average annual rate of 1%. Evaluate the investment by calculating the return by assuming that you will sell the property at the appreciated value after

1. 10 years

2. 20 years

assuming that the selling expenses are 3% of the selling price.