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Thread: Analysing

  1. #1
    Join Date
    Apr 2020
    Posts
    14

    Default Analysing

    Hi all!

    After running some numbers on a property that is currently on the market, Im wondering do you all have specific numbers that youd like a property to hit?

    - Monthly cash flow (after all bills)
    - CoC return
    - ROI

    And any other metrics that you like to use.

    And if anyone would be kind enough to use their purchasing/current numbers that would be very interesting and much appreciated.

    Thanks all!

  2. #2
    Join Date
    Mar 2016
    Posts
    402

    Default

    Easiest calculation I find and a relatively safe number is use 30% of rent to cover PM fees, insurance,rates and a minor annual maintenance...the rest should cover your mortgage and a don't forget a good accountant.



    If you're new to investing thats a good number and with low interest rates it should steady the ship more.

    As you become more experienced and increase your capital you can drop that to 20% on future property,time will build not just wealth but a safety net aswell.

  3. #3
    Join Date
    Mar 2016
    Posts
    402

    Default

    Property investment is exactly the same as starting a new business, and like most businesses they fail in the first 2 years.

    Like any business it takes time to make a profit,and if you are lucky enough to hit the jackpot in a short amount of time this will most likely set you up to fail on future investments .

    We are in the perfect environment to purchase property that actually pay for themselves with record low interest rates.

    You may have 3 or 4 years of low interest rates which should be enough time to find ways to increase rents with improvements, capital growth and treat each property like a separate business.

    Ignore the media and comments, stick to your numbers and your goals.

  4. #4
    Join Date
    Apr 2020
    Posts
    14

    Default

    Quote Originally Posted by Jeffa View Post
    Property investment is exactly the same as starting a new business, and like most businesses they fail in the first 2 years.

    Like any business it takes time to make a profit,and if you are lucky enough to hit the jackpot in a short amount of time this will most likely set you up to fail on future investments .

    We are in the perfect environment to purchase property that actually pay for themselves with record low interest rates.

    You may have 3 or 4 years of low interest rates which should be enough time to find ways to increase rents with improvements, capital growth and treat each property like a separate business.

    Ignore the media and comments, stick to your numbers and your goals.
    Thanks for the information Jeffa! Appreciated as always!


 

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