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How I decide on a purchase price - Episode 21
Manage episode 363955876 series 3449742
תוכן מסופק על ידי Nathan Broughton. כל תוכן הפודקאסטים כולל פרקים, גרפיקה ותיאורי פודקאסטים מועלים ומסופקים ישירות על ידי Nathan Broughton או שותף פלטפורמת הפודקאסט שלהם. אם אתה מאמין שמישהו משתמש ביצירה שלך המוגנת בזכויות יוצרים ללא רשותך, אתה יכול לעקוב אחר התהליך המתואר כאן https://he.player.fm/legal.
How do you decide on a purchase price??
You start at the end and work you way backwards.
The 2 different types of examples I talked about are:
Buy and Hold deals.
1 - Possible rent achievable after reno eg $750/week or $39,000 pa
2 - Less desired profit of $5200 = $33,800
3 - Less R & I of $6000 = $27,800
4 - Divided by interest rate of 6.5% =$427,600
5- Remaining equals purchase price of $427,600
6 - this equals a 9.1% gross yield on purchase price (seems good - but isn't)
Quick flip deals.
1 - After reno Sale Price $495,000
2 - Less Agents fee $ 16,000 (3.5%)
3 - Less Profit $80,000 -you will loose 50% to tax, gst, closing costs(so $40,000 in the hand)
4 - Less Reno cost $50,000
5 - Less Holding Costs 8% for 3 months = $7000
6- Possible purchase price = $342,000
Like always you can find more information over at our website:
https://nathanbroughton.com/
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