How to Triple Your Money Through Property

?? HOW TO TRIPLE YOUR MONEY THROUGH #PROPERTY. Consider the following calculation:

* This is general guidance only and not taking into consideration taxation and your personal financial situation. This calculation assumes no rent increase nor cost increase.

Purchase price: $150,000
10% deposit: $15,000
90% borrowing: $135,000
5% purchase costs and stamp duty: $7,500

MONEY INVESTED: $22,500

To triple your money, your money needs to grow from $22,500 to become $67,500 which is a $45,000 growth.

Annual interest rate @ 4%: $5,400
Water + council: $3,000
Insurances: $1,000
Maintenance: $500

ANNUAL COST: $9,900

Weekly rent: $250
Annual rent: $13,000
Vacancy rate: 3%

ANNUAL PROFIT: $3,100

Let’s take 10 year timespan. From rent alone you would be earning $31,000 minus 3% vacancy rate: $30,070.

All you need to see is for the property to grow up in value by $15,000 and you would have tripled your money….OR you could have waited a bit longer and the rent alone would have tripled your money.

Let’s say in 15 years time you triple your money ie. 300% return. It means, every year your investment returns 20%…hey, this figures is very familiar because the Oracle of Omaha ie. Warren Buffet’s Berkshire Hathaway has reported around 17.1% returns.

Do this 10 more times with similarly purchase properties….BOOM