Pete answers your property questions

If you like this Australian Property Podcast episode, Pete Wargent of Allen Wargent Property Buyers answers a few of your listener questions on property cashflow, how to generate passive income from property, and whether it’s too late to start your own property portfolio. Topics covered today: 1 – Tom Passive income through property -Resi yields, for growth -Create equity -Short term resi -Commercial – industrial -may not be totally passive Net yields of 6% to 7% $1.5m property may generate up to $100k net income after costs 2 – Jiminy How do I work out property cashflow and what is acceptable cashflow? Yield – 4%? Mortgage interest rate – 6%? Depends how much you borrow, and if there’s LMI Other costs – strata fees (unit/townhouse) insurance, rates, repairs, PM, other contingencies Depreciation After tax result – negative gearing What’s an acceptable yield? Well - it depends on your situation. Rents and costs generally rise over time Interest rates will be up and down through the cycle, stress test 3 – AJ I’m 42 and own my own home – is it too late to build a property portfolio? Or should I look at shares and super only? 10-year investments Cycles 7-8 years, phases of the property cycle How long to build equity? Super – tax effective When are you planning to retire? Around 60? Other plans e.g. PPOR upgrade? Career, own business etc. Plenty of time if you have over a decade Rask Resources - these are included by default Pete's Buyers Agency: https://www.allenwargent.com.au Alcove mortgage broking: https://www.raskmedia.com.au/services/mortgage-broking Amy Lunardi Buyers Agency (Melbourne) www.amylunardi.com.au All services: https://bit.ly/R-services Financial Planning: https://bit.ly/R-plan Invest with us: https://bit.ly/R-invest Access Show Notes: https://bit.ly/R-notes Ask a question: https://bit.ly/R-quest DISCLAIMER: This podcast contains general financial information only. That means the information does not take into account your objectives, financial situation, or needs. Because of that, you should consider if the information is appropriate to you and your needs, before acting on it. If you’re confused about what that means or what your needs are, you should always consult a licensed and trusted financial planner. Unfortunately, we cannot guarantee the accuracy of the information in this podcast, including any financial, taxation, and/or legal information. Remember, past performance is not a reliable indicator of future performance. The Rask Group is NOT a qualified tax accountant, financial (tax) adviser, or financial adviser. Access The Rask Group's Financial Services Guide (FSG): https://www.rask.com.au/fsg Learn more about your ad choices. Visit megaphone.fm/adchoices