Just wrote this blog post if anyone is interested...
http://www.hotspaceconsultants.com/..._property_in_to_a_cashflow_positive_property/
Jane
http://www.hotspaceconsultants.com/..._property_in_to_a_cashflow_positive_property/
Jane
Turning a cashflow negative property into a cashflow positive property
- Thread starter Jane - Hotspace
- Start date
Hi Jane
Couple of questions re the "four steps".
a\ Payback period: what is the after tax payback period for your $13k/$60pw reno example? It seems rather long...
b\ Increased equity: I would have thought that increasing (manufacturing) equity is just as important or more important than getting a higher rent. How did it work in your example?
Thank you, Paul
Couple of questions re the "four steps".
a\ Payback period: what is the after tax payback period for your $13k/$60pw reno example? It seems rather long...
b\ Increased equity: I would have thought that increasing (manufacturing) equity is just as important or more important than getting a higher rent. How did it work in your example?
Thank you, Paul
Hi Jake D
First entry in your cash flow is MINUS $13,000. So I just wanted to understand how long will it take before the after tax surplus covers the initial investment. Is it 4, 5, 6 years before you actually start making money.
Basically, what is the Internal Rate of Return of this project, after say 5 years? Even if you borrow all the money, you could have invested it in a better opportunity.
What do you think?
Paul
First entry in your cash flow is MINUS $13,000. So I just wanted to understand how long will it take before the after tax surplus covers the initial investment. Is it 4, 5, 6 years before you actually start making money.
Basically, what is the Internal Rate of Return of this project, after say 5 years? Even if you borrow all the money, you could have invested it in a better opportunity.
What do you think?
Paul
