E=MC² for Property Investors
E=MC2 for Propety Investors
When Albert Einstein created his ground-breaking theory of relativity, he would hardly have been thinking about real estate. Although he did state his love of “Compounding Interest” which is after all Capital Growth in Property terms.
Luckily, you don’t have to be a physicist to understand our reworking of this classic formula: Equity plus Median Cashflow = Ability to purchase an investment property for most.
Yet it’s surprising how often potential property investors don’t realise they have the capacity to proceed with purchasing property.
Today’s property options such as Dual Income Houses would further improve Albert’s equation. Rental yields of 6% to 7% providing Strong Positive Cashflow that can be utilized in various methods, such as to Pay Down Debt or for everyday usage.
Dual Income properties offer a Main residence & then a 2nd Dwelling which enables Strong Depreciation for Tax. Keeping in mind that the ATO needs a qualified Quantity Surveyor to complete this to comply to make your tax claim.
Albert’s formula for Dual Income Properties would run along these terms:
Equity (Growth) = Median Cashflow (Rental Yields) x 2 (Dual Income).
The key for each individual is to recognize their own capacity or ask for verification. Remembering that Equity & Median Cashflow = Probable Capacity for Investment Property.
Martin Wyatt, Director
Build Wealth with Property
Martin Wyatt the Director of Build Wealth with Property has assisted property investors for 27 years and is now able to meet & assist any client considering property investment or first home buyers. Martin is often in the Mornington office but can meet you during business or after hours in your own home.
At Build Wealth With Property, our team has been assisting property investors since 1990, with Martin Wyatt being a property investor himself for some 30 years. We have access to 8,000 plus properties at any one time and believe very strongly in match the right property to meet your needs.
For us it’s all about You, your Goals and our proven Property Systems of identifying the right location, style, price, design of property with infrastructure and amenities to tick all the boxes for a quality investment. Then working with your financial adviser we confirm the right Strategy, so when we combine this our “GPS” model works for your benefit has you on the right track.
P: 1300 123 468 M: 0407 500 158 E:Martin@BuildWealthWithProperty.com.au Or Visit www.BuildWealthWithProperty.com.au for more details