Property Maths

Hi Bigboof,

This is a very vague question. “Crunching numbers” before buying property will be heavily reliant on what numbers you are crunching; that is, how much you have to spend, how much you want to get for your money (returns), whether you plan to buy positive or negative geared properties, and the list goes on!!!

You will need to be more specific on what you want to know. Basically, it is more a matter of deciding what numbers you intend to “crunch” and what the sort of answers you hope to gain through your numerical analysis.

There are books on so many investing strategies, which is why you need to decide what your plans are; ie. growth or cashflow. If it is strictly to calculate figures, you may not even need a book; a simple calculator can answer your questions.

Cheers,

Jo

Hi Bigboof,

How can I answer that for YOU???

It depends on what the property is going to cost YOU and what YOUR return will be, not mine.

For example, it depends on how much the property costs to begin with, how much you will be eligible to borrow, whether you plan to use IO or P&I repayments, the sorts of rental returns for similar properties in the area (if you intend to use it as a rental IP), the list just goes on.

I don’t understand what YOU are wanting to know specifically!!! As I said, if you want simple calculations, any everyday calculator can achieve this, the financial analysis, or “doing your sums” part is up to YOU.

Jo

Hi kp,

Wasn’t trying to be mean, was trying to understand exactly what it was Boof was wanting, and somehow getting nowhere fast….but now that you have come in to save the day (and my sanity) well what can I say, except:

[specool] ONYA KP!!! [medieval]

Boof, watch this man; the guy is pure GENIUS!!!

Cheers,

Jo