Scott O'Neill
speaker
1,140 appearances
15 recordings
2 series
first heard Jan 2022
last heard 12 May
Scott O'Neill’s voice in public audio — every appearance, attributed to the second.
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recordings per month · last 12 monthsRecordings per month over the last 12 months — 1 in all, peaking in May 2026 with 1.
Appearances
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.
I've assumed a 3.5% interest rate.
Again, people might say, oh, that sounds low.
Average mortgage is still under 3% for commercial for this purchase.
so i've allowed a you know a few interest rate rises in that so we're talking a 24 grand or 24 500 interest cost so you minus 24 500 from 60k it's leaving you 35 500 income per year which equates to 682 dollars per week clear that's after every single cost including your interest
So it's nearly a $700,000 per week, a little bit of pocket money for taking that $700,000 out loan.
So it's a very good return on your money.
And you remember, if you're buying a million-dollar residential property, you're probably negatively geared $10,000.
So we're not negatively geared.
We're positive $35,000 a year.
So it's a big difference in cash flow.
G'day Craig, good to be back.
Well, just like the old supply-demand ratios we got taught in school, this still applies to commercial property when it comes to capital growth rates.
When a property or market is undersupplied and the demand's high, you're going to see capital growth.
And that's exactly what we've been seeing in the last few years of commercial
Showing 321–340 of 1,140 · page 17 of 57
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