The Property Puzzle: is it positive or negative?

With interest rates falling fast, property is nearing a point where it pays you to own it -once you factor in the negative gearing and depreciation benefits.

But how do you work out whether a property is cash flow positive or negative?

Follow these 4 simple steps:

Step 1

Open the Property Investment Calculator and enter in the property details such as rent, purchase price, interest rate and approximate expenses. Pause at the depreciation entry.

Step 2

Open the Depreciation Calculator and enter the purchase price of the property, where it is, standard of finish, quality and approximately when it was built.

Step 3

Enter in the results of the Depreciation Calculator into the depreciation field of the Property Investment Calculator. (If you enter 5 years – your property will be anlaysed over a longer period)

Step 4

Press CALCULATE on the Property Investment Calculator.

The results indicate how much the property will cost or pay you to own on a weekly basis.

These tools are designed to help you make a more informed decision when buying your next investment property.

Tyron

PS – No other calculator on the market can be as accurate – ONLY Washington Brown has the key ingredient – the depreciation allowance based upon the intended purchase price.

PPS – Best of all these calculators are free to use!