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.

Trend

recordings per month · last 12 months

No recordings in the last 12 months.Older appearances are listed below; set an alert to hear about the next one.

Appearances

newest first · ▶ plays the moment

Australian Finance Podcast · Property investing 101, Ft. Amy Lunardi · 27 Jul 2020 podcast

the percentage of the purchase price that is attributed towards the land component and the asset or the dwelling component.

So to begin with, I want to make it really clear that land value is not the same as land size.

So for example, if you buy, I'm here in Melbourne, if you buy 150 square metre block in Fitzroy, it's going to be worth more than a 700 square metre block somewhere 30 kilometres out of the city.

So we're not talking about land size here, we're talking about land value.

And land to asset ratio, we want it to be as high as possible for

that still fits within our cash flows.

And what I mean by that is if you buy a big old dilapidated house on a big block, we might have say a 90%, 95% land to asset ratio, but that house is going to be falling down around us.

It's going to have a super low yield.

So it's going to cost us a lot to hold.

And in theory, that property will grow the most if the land value is good, but it's just going to cost us a lot to hold.

And on the other end of the spectrum here, we'll have something like one of those brand new off the plan, high density apartments, which have very, very low land components because you're say one of,

100 on the block, but it won't cost us very much to hold because the yield is higher.

And I have a lot of people saying, especially the more analytical people saying, well, how do I figure out exactly how much the land to asset ratio is?

And the only way you can really do it is say, if you had a, like a house and land package, you knew exactly how much the land costs and exactly how much the dwelling costs.

That's the only way to get an exact

number.

But I say to people, kind of think of it more as a flowing spectrum with a dilapidated big old house on a good block at one end, a high density apartment at the other end.

Ideally, we want to be aiming for that sort of 60 to 90% as an investor, knowing that the closer you get to 90%, the more negative gearing you're facing.

Absolutely.

So if you have a block of land that's sold nearby or a house that's so dilapidated it's essentially land value, you can use that as a benchmark.

Showing 701–720 of 1,235 · page 36 of 62