Australian Property Podcast Pete answers your property questions
May 13, 2025
Dive into the fascinating world of property investment and uncover the secrets to generating passive income. Discover how residential and commercial properties stack up in terms of cash flow, and learn the intricacies of calculating yields amidst fluctuating interest rates and expenses. Is it too late to start building a property portfolio at 42? Listen for insights on market cycles and equity growth, proving there's still time for savvy investments. Explore the dynamics of the housing market and get ready to strategize!
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Episode notes
Building Passive Property Income
- To build passive income through property, focus initially on generating equity through capital growth.
- Consider commercial or short-stay properties later for higher net yields and income potential.
Calculating Property Cash Flow
- Calculate cash flow by subtracting mortgage interest, fees, rates, repairs, and vacancies from rental income.
- Run stress tests for interest rate rises to ensure you can manage negative cash flow periods.
Is It Too Late To Invest?
- A property investment horizon of about 10 years is ideal to ride cycles and grow equity.
- Factor in your retirement plans, superannuation, borrowing capacity, and career before choosing property or shares.