Building A Success Team Behind every successful person, there is a loyal and trusted team of people with a wealth of knowledge and expertise in their field. This is the team that has been put together along the way, by developing an excellent rapport with them. How...
‘Interest Only’ Rule of Thumb In most cases we refer to ‘interest only’ as a rule of thumb. It depends on the council, it depends on how much rates you pay. It depends on whether it is a high security area, whether it floods, how much...
‘Principle and interest’ or ‘interest only’? When doing investment properties as a general rule have them at interest only. Sometimes a bank will not let you into a deal on that scenario, depending on your income and your debt levels for example. In which case, if...
Percentage Point Split Now, remember the ‘rule of two’ does not work for commercial properties. When you are talking about valuations on a commercial property; the higher the rental yield, the higher the value on the property. But how do you tell whether a commercial property is...
Commercial property and the Rule of Two The next distinction to be made here is that this formula does not apply to commercial property. When you look at commercial property, your outgoings are normally paid by your tenant. Sometimes even your insurances are paid by your...
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...