Real Estate is a high growth but low yield investment and once you build a big enough asset base, you can lower your loan value ratios, so that you will be able to live off the cash flow of your properties.
Cash flow is very important and it is what will keep you in the game, until you have a big enough asset base.
As a property investor it is vital that you maximize your net cash flow and here are 6 other areas to consider when you assess your cash flow, from your property investments.
- Tax Deductions (from your rental properties)
- Depreciation (Capital Works, plant and equipment)
- Interest rates on your borrowings
- Purchasing costs (stamp duty, legal costs, loan costs, valuation fees, repairs/improvements, insurance, agent letting fees etc)
- Vacancies (periods when you don’t receive rent)
- Property Management Fees- consider using a Self Management Platform like RealRenta and save thousands!!
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