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2019 Money Magnet Symposium - Discover how to make, and keep, more money and achieve a financially empowered future
Viewing 7 posts - 1 through 7 (of 7 total)
  • Profile photo of Adam SellersAdam Sellers
    Participant
    @adzy1992
    Join Date: 2018
    Post Count: 6

    Hi Guys!

    I’m working on trying to crunch the numbers on a property at the moment, and was wandering if anyone could point me in the direction of what to include in the analysis? Ex. insurance, property management, bills etc.

    I hope that makes sense!

    Thank you, Adam.

    Profile photo of Ethan TimorEthan Timor
    Participant
    @ethantimor
    Join Date: 2016
    Post Count: 282

    Instead of asking us to provide you with a full list, how about you let us know what you included and we’ll add what we think is missing? 😉

    Ethan Timor | Aligned Finance Pty Ltd
    http://www.alignedfinance.com.au/
    Email Me | Phone Me

    Active Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)

    Profile photo of JaxonJaxon
    Participant
    @jaxona
    Join Date: 2014
    Post Count: 282

    42 Cohuna Street Income breakdown

    Name Expenses Income Weekly Total Yearly Total Total
    Rental Income 240pw 240 12480
    Mortgage Repayments 110 110 5720
    Rates 24.9 24.9 1,294.86
    Home and Landlord 13.59 13.59 707
    Management Fees 21.13 21.13 1099

    Total Income $240 $240 $12,480.00 $12,480.00
    Total Expenses $169.62 $169.62 $8820.86 -$8820.86

    TOTAL $70.38 $3659.76

    Profile photo of JaxonJaxon
    Participant
    @jaxona
    Join Date: 2014
    Post Count: 282

    Really for expenses its just what you will have generally, yes you can add and allocate extra costs but its all personal preference.

    So main ones are
    -repayments
    -BC
    -Rates (land and council)
    -management fees
    -Insurance

    that’s about it from my perspective, depending on property etc.’

    So you workout income – expenses = yearly return.

    then yes there will usually be some Tax incentives but I see this as gravy personally.

    Profile photo of Adam SellersAdam Sellers
    Participant
    @adzy1992
    Join Date: 2018
    Post Count: 6

    Thank you again Jaxon, you’re a champ! I did have a couple of those down, and quite a few more, but I think I’m just planning for unnecessary things!

    Thanks again guys! Much appreciated

    Profile photo of JaxonJaxon
    Participant
    @jaxona
    Join Date: 2014
    Post Count: 282

    Pleasure mate,

    look you can take as far as you want, but for me the above has proven to be enough.

    Profile photo of StevenSteven
    Participant
    @steven1982
    Join Date: 2017
    Post Count: 174

    Probably still put down a few hundred each year for maintenance.

    If it is a brand new property or one that you renovated yourself, then you should be pretty well covered.

    If it is a tired old property then expect things to break here and there once in a while.

    It is not “whether or not things will break”, but rather “when things will break”.

    If things don’t break, then great! You’d be quite happy that those a few hundred are your profit for that year, but even when things do break, that’s OK, you are covered (unless something major that is broken that will require a few thousand to fix, but really should aim to prevent those…).

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