How to choose the right property? So you have made the decision to invest in a property! Great, but now you have to make sure you choose the correct property. On this episode we go through the steps on how to choose the right property
3:55 – Step 1, Start with the end in mind, setting a goal
5:15 – Step 2, Obtaining and securing finance
7:20 – Step 3, Building a strategy
9:00 – Step 4, Do your numbers!
9:15 – Cash Flow is KING!
9:45 – Example of doing your numbers
Purchase Price of Property: $500,000 Stamp Duty and other costs: $20,000 Amount Borrowed: $520,000 Rental Income Received: $450 per week
Ongoing Costs Interest Cost @ 5.00% p.a: $26,000 Rates: $1,500 Land Tax: $804.00 Agents Fee @ 7%: $1,638 Insurance: $500
Total Costs: $30,422 Less Rent: $23,400 ($450 per week x 52) Annual Shortfall: $7,022 Less tax deduction: $3,160 (assuming a tax rate of 45%) Annual after Tax cost: $3,862 or the equivalent of $74.26 each week
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15:10 – Step 5, Research! (Research is not Searching)
16:00 – Owner Occupiers are price makers; Investors are price takers!
19:00 – Location does 80% off the heavy lifting!
19:50 – Scarcity is very important, You cant build more land!
22: 10 – Link to Sydney radius image on Socials
FB – https://www.facebook.com/firstbrickproperty/posts/166499164763340
22:20 – Gentrification, What is it? How do you spot it? Why is it important?
26:00 – Step 5, Know where you are investing
27:25 – Some data points to look at when researching
30:45 – Step 6, Do your due diligence
34:20 – Special Show offer!
In Summary, the 6 points to factor in when choosing the right property
1. Start with the end in mind
2. Obtaining finance
3. Build a strategy
4. Do your numbers
6. Due Diligence
Buying property is our passion, helping you do it is our mission!
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