Amy Lunardi
speaker
1,235 appearances
4 recordings
1 series
first heard May 2020
last heard Dec 2022
Amy Lunardi’s voice in public audio — every appearance, attributed to the second.
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Appearances
It takes time to sell it and it's not always the best time.
So sometimes you have to wait.
You can't sell a piece of a property.
You can't go like you can with shares.
So
And we also have, when we buy a property, we've generally most of the time got a loan.
So this is the difference between a lot of other assets is we leverage ourselves quite highly.
So like I said earlier, most of the time we'll borrow as an investor 80%, sometimes more.
And what that means is that we've got the benefit of compounding effects, right?
So if we take our, say, $200,000 deposit and we take that to buy a million dollar property, so that's an 80% LVR, so loan to value ratio.
If we have a property that's, say, growing at 7% per annum, we've got 7% on a million dollars growing rather than 7% on $200,000 growing.
which is great when the market is growing, but we also need to understand that that works in reverse.
So if the market is declining, then we've got compounding effects going down as well.
So that's something really important to know.
So I would say as a very broad rule of thumb, you should aim for 10 years.
Yeah.
I think that there's certain strategies which we'll talk about shortly that people employ that for them it would be less because they've built that into their strategy, for example, flipping or value adding.
But just to give yourself time for that property to do what it needs to do, I think that 10 years as a minimum should be your goal.
Yeah, so I'll use the word cash flow all the time when I'm speaking to investors.
And what that basically means is when you've got an investment property, we have the income.
Showing 541–560 of 1,235 · page 28 of 62
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