Hello everyone –
This is Dwade Sheehan (co-founder, owner and director of the We Build Futures – Client Investment Program).
Thanks for your ongoing feedback and social discussions about our Program. I rarely get the opportunity to get online and provide Facebook updates but this $30 a week headline has really got people excited.
We have been offering this Program to property investors and valued clients across Australia for more than 15 years and part of this Program is educating people on how easy it is to own an investment property. Its true that the weekly out of pocket cost to own and maintain an investment property can be a lot less than you think. In fact, for some clients, on some properties it can actually be cash flow positive. But here is a little example of what our average client can do with one of our average homes.
John and Sue bought a $450,000 house and land package which also attracted $15,000 in costs (stamps, legals, fees etc). They borrowed 100 percent of this $465,000 at 5 percent meaning their finance costs was approx.. $447 per week. This property has annual running costs (rates, insurance, accounting, management etc) of about $8,000 which is approx.. $153 per week. This means it costs them approx.. $600 per week to own and maintain this brand new investment property.
However, when you consider that John and Sue get approx.. $435 per week in rent and approx.. $150 per week in tax benefits, this property generates approx.. $585 per week in income.
This means when you take the cost of approx.. $600 per week and subtract the income of approx.. $585 per week, then the weekly out of pocket cost for John and Sue to own and maintain this property is just $15 per week.
Simple – its not rocket science but there are some interesting mechanics behind this which are specific for different people – so this is just a general guide for education purposes.
Hope this helps guys and feel free to contact us if you want to learn more!
Dwade Sheehan – FRD Group Director