The best part of our property seminar tonight was David (Lodge Rentals) talking about return on doing up a property. His client spent $40,000, which was mainly repairs so after the tax deduction the real cost was only $27,000. He is now getting $115 extra rent per week, which based on 50 weeks is an extra $5,750 rent per year. As a gross yield on the money spent this is 21%!!
The cashflow will also be great, as if he borrowed $40,000 at 6% = $2,400 per year extra interest cost. The $5,750 extra rent would cover this plus give a $3,350 surplus.
With your rentals, can you concentrate on what you already own and maximise the return?
Ross
The cashflow will also be great, as if he borrowed $40,000 at 6% = $2,400 per year extra interest cost. The $5,750 extra rent would cover this plus give a $3,350 surplus.
With your rentals, can you concentrate on what you already own and maximise the return?
Ross
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