Increase your wealth in under 3 years

In this simulation you can see how an investment into property can increase your wealth in a short time. Picking the right home in the right suburb is important, therefore our role is to present you with the facts to help you make an informed choice. Investing uses 'leverage' to borrow money to buy multiple properties over a short period of time. 

How a deposit of $59,500 becomes $189,000. 

In this simulation you can see how leverage works. The price of the investment was $595,650. To buy this investment the deposit was 10%, $59,500. The holding period was 3 years. The bank lent 90% of the value of the investment $536,085. After 3 years the property was sold and the Net Sales Proceeded before tax is $189,090. 

A balanced approach to investing in 2021

This year the consensus among many experts in the property investment space is ‘small homes’ with small mortgages. The idea behind this thinking is to reduce exposure and to keep investment loans smaller with less reliance on rental income. Any investment that places a potential financial burden upon the family income, especially with the uncertainties of the present world in which we live, is not ideal.
 

Way to often, first time investors make the choice to buy a large home with a corresponding large mortgage or a large mortgage with a small home in an inner-city post code. In both these scenarios the investment strategy is heavily reliant on rental return. But, on the other hand buying a smaller home with a smaller mortgage in an outer suburb will give you a more balanced cashflow. The rental return in the other suburbs will be between 3.6 to 4% return while the interest rate is sub 3%, therefore these properties will be cashflow positive.  The most important criteria when investing this year will be cashflow. 

Victorian Finance Group - our finance partner