How does the Cash Flow of Investment property work?

 Turn $50,000 (cash or equity) into $3 000,000

There is really no rocket science in turning $50k of equity in your home or cash  into $3 000,000 in 10 to 15 years.

Whilst Saving over *$7,500 in Income Tax per year (you are going to pay away anyway) you could otherwise divert towards creating your own wealth …  isn’t this prudent business sense!

Procrastination only pushes back your own Goals | where keeping this simple and” committing to yourself and your family” will as you know certainly put you ahead of the game. You are paying away the income tax and probably have equity or cash at hand to invest effectively.

 When all it takes is Personal Commitment towards your goal of creating $xxx  in assets, is to take action on your first investment, the rest will be easy … click here to download “Your Own Reasons Why” check sheet. Will change your life!

 I was thinking “Is the commitment really what you envisage it to be ?”

You may not be aware of the numbers and financial potential property can afford you as an investment vehicle in Melbourne, Brisbane or wherever you choose :

 If one uses equity in your home and borrows at 5% (or uses cash)

  • Invest this amount as a 10% deposit on an investment property
  • You could generate returns of 30% upwards to even 58% on your deposit alone
  • In a cash flow positive property, which you can use to repay your borrowed equity or bring down your home loan quicker
  • Where you will get capital growth on 100% of your investment property
  • And save a bit of income tax as an added benefit
  • The potential to turn $50k into $3million

 

And / Or

 Gain control over your Super Fund

  • By investing in a property in a SMSF
  • Giving you choice
  • Returns of 9 – 12%
  • Using only 20% or 30% deposit
  • Plus capital growth on 100% of the value

 

If this now makes more sense to you are you open to a discussion based on the realistic numbers presented here for demonstration purposes only, would you reconsider your options and be prepared to take action?

 


 

Your Own Goals for Lifestyle or Retirement

Our focus is on you and what you want to achieve; based on your personal financial goals and choice of lifestyle a plan is put in place where we work with you to help you implement a strategy to get you there.

Whether that strategy is 1 investment property or 2;3;4;5;6 we will work with you to show you how you can achieve your plan now and into the future.

We do this by getting a clear understanding of your current situation and helping you plot a course to achieve your desired outcome at a time of your choosing in the future

3 x Investment Properties could very well meet all your needs and is easily achieved

 


 

See numbers below on a conservative model for one investment property :

 Property value $450,000

  • 10% deposit
  • 5% interest only
  • Taxable income $100,000
  • Rental yield of 4.5% at $400 pw
  • Including : management fees, insurance, rates, body corp etc
  • Including : depreciation benefits

 

Results (as attached) could be :

  1. Pre-tax Rate of Return 34.36%
  2. Saving you $7,082 income tax otherwise paid
  3. Cash Flow -$9 per week in year one (price of 2 x coffees)
    1. If you were borrowing the deposit at 5%
    2. Your net gain is just over 28%
  4. Only 10% deposit invested BUT Capital Growth on 100% value of the property

 

[By the way if we secure you a 5% rental yield the return on your investment goes up to 37.39% and cash flow positive by $18 pw]

 

Cash Flow Analysis of Investment Property

 *all figures quoted are for demonstration purposes only and will change based on your perconal and financial circumstances

Can you now identify with the potential? Most people are not aware of the low entry investment and the strong returns gained from being committed to yourself and your financial goals by using your bank, your tenant and the tax man to grow and secure wealth for you.

 Seeing the potential, and after the high cost of living in Australia can one afford to say no to growing one’s own wealth?

 We invite your questions and appreciate your feedback through open dialogue.

Comments or questions are welcome.

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