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Doing the 'numbers' on an Investment Property purchase - Episode 12
Manage episode 361108211 series 3449742
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We are looking today at 'doing the numbers' in relation to an investment property deal. What are they? How do I know what is what.
As i talk about - this is pretty data heavy, so I have included all the numbers that I discuss below:
Equity Numbers:
1. Purchase Price: $500,000 (40% deposit-$200,000 cash & 60% loan - $300,000)
2. Reno costs: $100,000 - my cash
3. New Valuation: $900,000
4. New Mortgage: $540,000 - 60% LVR
5. Equity: $360,000
New mortgage of $540,000 less first mortgage of $300,000 less $300,000 your cash
= $60,000 of your own cash left in this deal
Cashflow numbers:
1. Rent: $52,000
2. Mortgage Costs: $35,100 (6.5% - interest only)
3. Fixed Costs - Rates, Insurance, ($5500)
4. Other costs: - repairs, etc. ($2000)
5. Cashflow $9400 pa or $783 per month
Like always you can find more information over at our website:
And please follow us on our socials for more property content:
https://www.instagram.com/nathanrbroughton/
https://www.linkedin.com/in/nathanbroughton/
https://www.facebook.com/NathanBroughtonProperty/
https://www.youtube.com/NathanBroughton
Like always you can find more information over at our website:
https://nathanbroughton.com/
And please follow us on our socials for more property content:
https://www.instagram.com/nathanrbroughton/
https://www.linkedin.com/in/nathanbroughton/
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