Case Study

$50 may be all it takes to own an investment property.

Find out how.

The following property investment analysis case study is based on an actual property package.

The Investor

Mr Sample Person

man

 

  • Gross income – $80,000 per annum
  • Owns his own home which he lives in
  • Has equity in his existing home to use for a deposit

 

The Investment Property

Lot 88 Emory Court Beaudesert

Lot 88 Emory artist impression

 

  • 4 bedrooms, 2 bathrooms, double lock up garage
  • Property Package Price (house and land) – $377,000
  • Current Rent – $360/week

 

Being an investor, Mr Sample Person is entitled to receive a tax credit each week in his pay.

Using the tax credit and the rental income to make the repayments on the investment property, our Investor, Mr Sample Person would need to contribute just $42 per week out of his own pocket to hold this property.

Who Pays?

Pie chart $80k income $377K house 5
 

  • Tenant (Rental Income)  – $360/week
  • Taxman (Tax Credit)       – $140/week
  • You (Investor cash)         – $42/week

 

 

 

Using annual CPI increases to rent and expense and an average annual capital growth of 8%, this property will be positive in 5 years and will not cost our investor Mr Sample Person a cent out of his own pocket.

CLICK HERE to find out how we can do this for you.

Below is a report of sales growth in Beaudesert over the last 15 years. The average annual capital growth for this period is 9.58%.

 

Year No. of Sales Average Median Growth Low High Q1 Q3 IQR
1998 82 $104,847 $97,000 15.80% $20,000 $475,000 $71,000 $121,500 $50,500
1999 84 $110,468 $108,000 11.30% $31,715 $240,000 $81,875 $129,450 $47,575
2000 69 $114,971 $93,000 -13.90% $32,500 $650,000 $77,000 $125,000 $48,000
2001 87 $105,852 $96,000 3.20% $51,000 $225,000 $79,000 $126,500 $47,500
2002 147 $119,485 $115,000 19.80% $30,000 $460,000 $89,750 $135,000 $45,250
2003 212 $157,990 $147,750 28.50% $44,000 $480,000 $120,000 $190,750 $70,750
2004 119 $225,917 $208,000 40.80% $88,410 $1,100,000 $170,000 $260,000 $90,000
2005 93 $265,234 $230,000 10.60% $60,000 $1,250,000 $205,000 $315,300 $110,300
2006 124 $349,081 $259,000 12.60% $60,267 $4,631,000 $223,750 $340,000 $116,250
2007 156 $309,917 $290,000 12.00% $26,500 $955,000 $258,000 $349,250 $91,250
2008 107 $392,463 $322,000 11.00% $200,000 $5,000,000 $285,000 $366,500 $81,500
2009 110 $328,615 $310,500 -3.60% $190,000 $825,000 $276,000 $353,000 $77,000
2010 99 $347,678 $340,500 9.70% $60,000 $1,200,000 $290,000 $387,500 $97,500
2011 67 $391,940 $325,000 -4.60% $173,500 $4,800,000 $274,000 $394,000 $120,000
2012 75 $326,957 $317,000 -2.50% $197,000 $650,000 $280,000 $393,750 $113,750
2013 40 $361,320 $325,000 2.50% $217,000 $875,000 $270,000 $399,125 $129,125
Average Annual Capital Growth 9.58%