3 Factors Affecting the Rule of Two : Part 3 3. Tax Deductions That gives you a tax deduction which you can offset against other income. That tax deduction is not a real expense. It is not a cost to you in that year. If you take...
3 Factors Affecting the Rule of Two : Part 2 2. Cash Returns Another thing referred to here is just a pure cash return. When you start looking at things such as depreciation and you start bringing tax into account, that ratio of basically 1:2 is going...
3 Factors Affecting the Rule of Two : Part 1 1. Borrowings This refers to 100 per cent borrowings being $200,000 borrowed from somewhere, whether it be from another house that you have used as security to borrow the equity against to put into this property, or...
The Rule of Two When you are looking at the ‘rule of two’, what it refers to is: Take the purchase price – for example it is $200,000 – divided by 1000, multiplied by two. That should give your $400 per week. $200,000 / 1000 x 2 =...
The doubling rule of 72 This is just a quick little strategy to help you work out what things could be worth in the future. The ‘rule of 72’ enables you to determine how long it will take for something to double given a fixed growth...