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A property investment and education company has developed an online tool intended to arm investors with the knowledge needed to make informed decisions.
Sound Property has launched an online cashflow calculator that can be used to estimate the net income of an investment during the first year of ownership.
“Investors who understand their position and plan for long-term gains will be the ones who do better in any market,” explained director of Sound Property Group, Andrew Cull.
“We want to promote investing in property in a safe manner, and for this reason we are making this free online resource available to any investor thinking of purchasing property.”
The calculator includes all the important considerations such as stamp duty, interest repayments, lender’s mortgage insurance estimates, depreciation and equity growth.
The comprehensive nature of the calculator is crucial, as Cull explained that investors have a tendency to over- or underestimate expenses related to the maintenance of a property.
He added, “We are currently seeing many opportunities for solid long-term growth in capital cities other than Melbourne and Sydney, however, we highly recommend investors estimate their cashflow before investing in property.”
For the last 25 years, investment in houses across Australia has achieved an average of 6.8% growth per annum.
According to Cull, whether newly entering the market or holding onto an existing investment, having a clear and comprehensive grasp on one’s cashflow is vital to avoid household stress and minimise risk.
