If you like this Australian Property Podcast episode, Pete Wargent of Allen Wargent Property Buyers answers a few of your listener questions on property cashflow, how to generate passive income from property, and whether it’s too late to start your own property portfolio.
Topics covered today:
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1 – Tom
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Passive income through property
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-Resi yields, for growth
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-Create equity
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-Short term resi
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-Commercial – industrial
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-may not be totally passive
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Net yields of 6% to 7%
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$1.5m property may generate up to $100k net income after costs
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How do I work out property cashflow and what is acceptable cashflow?
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Yield – 4%?
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Mortgage interest rate – 6%?
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Depends how much you borrow, and if there’s LMI
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Other costs – strata fees (unit/townhouse) insurance, rates, repairs, PM, other contingencies
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Depreciation
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After tax result – negative gearing
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What’s an acceptable yield? Well - it depends on your situation.
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Rents and costs generally rise over time
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Interest rates will be up and down through the cycle, stress test
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I’m 42 and own my own home – is it too late to build a property portfolio? Or should I look at shares and super only?
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10-year investments
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Cycles 7-8 years, phases of the property cycle
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How long to build equity?
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Super – tax effective
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When are you planning to retire? Around 60?
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Other plans e.g. PPOR upgrade?
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Career, own business etc.
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Plenty of time if you have over a decade
Rask Resources - these are included by default
Pete's Buyers Agency: https://www.allenwargent.com.au
Alcove mortgage broking: https://www.raskmedia.com.au/services/mortgage-broking
Amy Lunardi Buyers Agency (Melbourne) www.amylunardi.com.au
All services: https://bit.ly/R-services
Financial Planning: https://bit.ly/R-plan
Invest with us: https://bit.ly/R-invest
Access Show Notes: https://bit.ly/R-notes
Ask a question: https://bit.ly/R-quest
DISCLAIMER: This podcast contains general financial information only. That means the information does not take into account your objectives, financial situation, or needs. Because of that, you should consider if the information is appropriate to you and your needs, before acting on it. If you’re confused about what that means or what your needs are, you should always consult a licensed and trusted financial planner. Unfortunately, we cannot guarantee the accuracy of the information in this podcast, including any financial, taxation, and/or legal information. Remember, past performance is not a reliable indicator of future performance. The Rask Group is NOT a qualified tax accountant, financial (tax) adviser, or financial adviser. Access The Rask Group's Financial Services Guide (FSG): https://www.rask.com.au/fsg
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