We come across people all the time who are “doing their numbers” about property investments. It’s a funny thing that so many people use this term, but what does it actually mean?
It turns out that the “numbers” mean different things to different people.
For some people it simply means affordability. Whether they can meet their loan repayments.
For others it means negative gearing opportunities. They will need to invest in additional information such as a depreciation schedule.
Some investors are only interested in high rental yields and are not concerned about capital growth.
Others want to balance the capital growth potential and the rental yield.
And then there are investors who like to add value by making improvements to a property. They need to be able to have a handle on renovation costs to ensure they don’t end up out of pocket.
There is no right or wrong way to approach the “numbers” when it comes to property investment. We recommend you see a financial planner or accountant before you start your property search to find out which numbers you should be focussing on.
Published:- 18 February, 2011
Please note: Good Deeds buyers tips are intended to be of a general nature. Please contact us for advice that is specific to your individual circumstances. You may also need to get advice from other professionals such as an accountant, mortgage broker, financial planner or solicitor.