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Fitzgerald Charity Housing

Fitzgerald Housing

Investment Opportunity: Residential Property in Australia

Explore the financial potential of this $450,000 property. Zero initial investment needed, promising 5% rental income increase yearly.

Property Information

Diving headfirst into an investment opportunity without understanding the details? We wouldn't recommend it. Let's lay down the basics before we delve into the meat of this opportunity.

Purchase Details

A residential property isn’t just another commodity – it’s a commitment, a slice of the future, a piece of Australia. The price tag? A cool $450,000. But hold your horses – there are additional purchase costs to consider, amounting to $18,203, plus loan costs of about $1,594. All in all, you’re looking at a total investment cost of $469,797.

Rental Income

Here’s where things start to look up. This isn’t a one-way street of outgoing costs. This property is a money-making machine with a projected rental income of $18,200 for the first year. And guess what? This sweet deal gets sweeter with a projected annual increase of 5% in rental income. Can you say cha-ching?

Loan Information

Money makes the world go round, and loans keep the investments rolling. This property is associated with an interest-only (I/O) loan type, boasting a fair interest rate of 3.85%. The initial cash invested? Zero dollars. That’s right. With interest payments summing up to $18,087, we’re looking at a closing loan balance of $469,797.

Property Description

Numbers and finances are crucial, but what about the property itself? Let’s shed some light on that.

Location and Expected Income

Location, location, location! This isn’t just any residential property. It’s situated smack dab in the heart of Australia, an area lauded for its vigorous real estate market. This gem is estimated to generate a rental income of $18,200 in the first year, with a promising annual increase of 5%.

Initial Investment Details

What’s that you’re asking? Initial investment? None. Nada. Zilch. That’s right, folks! You can kickstart this venture with $0 upfront. And the weekly after-tax investment? A manageable $114. Talk about a steal!

Cash Flow Analysis

Money in, money out. Let’s break down the cash flow to truly understand the potential of this investment.

First Year Projections

Year one, the beginning of your journey. The pre-tax cash flow rings up to -$5,911, accounting for expected rental income, rental expenses, principal and interest payments, and tax credits. But don’t let this initial figure discourage you!

Projections for Subsequent Years

The beauty of this investment lies in the future. Despite the first year’s negative cash flow, the property is projected to see an increase in cash flow in the following years. Patience is key!

Investment Benefits

Every investment has its perks, and this one’s no different.

Increasing Rental Income

With a projected 5% annual increase in rental income, this property is like a cash-filled piñata, the gift that keeps on giving!

Low Initial Investment

And the cherry on top? This property requires no initial investment, which makes it a sweet deal for those with limited capital. Who said you need money to make money?

Conclusion

Investing in a residential property in Australia is more than just buying a house; it’s acquiring a potential income generator, a piece of the vibrant Australian real estate market. The expected positive cash flow in the following years, no upfront investment requirement, and a promising 5% annual increase in rental income make this an opportunity worth considering.

Sure, like any investment, there are risks – market fluctuations, unexpected costs, and interest rate changes. But with careful planning and management, these risks can be mitigated. So, are you ready to make your mark in the Australian real estate market?

Contact us today to learn more about our innovative investment strategies and embark on your journey towards financial success.

FAQs:

1. What is the purchase price of the property?

The property is priced at $450,000.

2.How much rental income is expected in the first year?

The property is expected to generate $18,200 as rental income in the first year.

3.What type of loan is tied to this property?

The property has an Interest-only (I/O) loan with an interest rate of 3.85%.

4.How much is the total investment cost?

The total investment cost, including purchase and loan costs, is $469,797.

5.What are the main risks associated with this investment?

The main risks involve changes in the local real estate market, unexpected maintenance costs, and interest rate fluctuations.

Contact us today to learn more about our innovative investment strategies. Now knowing the low risk and high returns. Contact us to get started.

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