Scott O'Neill

syndicates generally play over $10 million.

So there's, I guess, a lot less competition from those types of guys.

But yeah, if you're lucky enough to have a larger budget, you will be able to play in that quiet zone of the market, which is generally multi-tenant, large freehold sites, very good quality deals.

So dollar for dollar, that's some of the best deals you'll ever find in that range.

Yeah, so this is a really good question to get your head around because if you're taking a mortgage out in this environment, you want to know your true after cost cash flow.

So your real true net position.

So if you're going to go buy a million dollar property, you generally will use a loan.

You know, in most cases, a 70% loan.

So that means you need a 30% deposit.

Now, I'm assuming a 30% cash deposit is used in this case.

So you immediately need $300,000 to buy it.

Now, New South Wales stamp duty for a million dollar purchase is $40,000 or just over.

You're up to $340,000 costs involved.

And then these other costs such as solicitors, valuation and whatnot, like there's probably another $5,000, $6,000, $7,000, $8,000 in that as well.

So total outlay to purchase a million dollar property will be $370,000 max.

Now, how much cash flow do you get out of that?

I'm assuming a 6% return because that's our average yield for our company.

So 6% is more than achievable in 2022.

So 6% is 60 grand income on your million dollar purchase.

Now your mortgage on that, remember we took out a 700K mortgage.