Peter Gordon Dip.FP. & Dip.FMB.
e peter@investoproperty.com.au
Ph: 0401 214 134

Cash is the Key to Investing in Property

Friday, 11th October 2013

 

Cash is one of the most important factors in successful property investing. Here we look at how you can invest successfully by understanding the key role cash plays

 

Understand your Starting Cash Position

Understanding your starting cash position is the first step. So look at how much you earn? How much tax you pay? How much can you borrow? Use the table below to record these numbers and start to build a picture of your cash position.

Starting Cash Position

Your Income

$

The Amount of Tax You Pay

$

How Much You Can Borrow

$

 

 

Property Cash Position

Now that you understand your starting cash position the next step is to look at the investment property you may want to buy and estimate the rent you will receive, any expenses and the likely tax deductions you will receive. Add this information to your property cash position table.

Property Cash Position

Estimated Rent

$

Estimated Property Expenses

$

Estimated Tax Deductions

$

 

 

The Actual Cash Cost for Your Investment Property

This is where you look at the actual cost in terms of cash that your investment property will cost you each week. Use the table below to record this figure.

Cost of My Investment Property

Weekly Cost of my Investment Property

$

 

Use these three tables to quickly generate a picture of your cash position when looking to invest in property. The ideal scenario is a property that is not costing you a lot in cash each week. This will allow you to purchase multiple properties in the future and really build a property portfolio.

If you would like to know more about this topic or you would like to suggest a topic for me to write about then please contact peter@investoproperty.com.au