…and then paid for your brand new car
Cars and Property. Two of the biggest purchases we usually ever make. Sure one is a much larger than purchase the other, but property usually increases in value and cars, well, they do look cool and they have that new car smell…
So what if you want to buy an investment property and get a new car? Too much too soon or can you have both?
Well we might just be able to help you make that happen.
Todd will tell you that the best way to get a property loan is to have plenty of spare dollars at the end of the month. Car loans have a tendency to eat into those dollars. So usually after our clients buy a property, then we look at car financing.
What if you could get an investment property that pays for you new car? A novel concept perhaps so let’s take a look at some real figures and see if we can make it work. I am using a live and recent example from August 2015.
A property came across my desk this week that had a purchase price of $520,000 and a weekly rental of $660. This makes for a 6.6% gross return. Taking into account the usual running costs and an interest only loan of 5.2% it will leave the owner with the following cash flow:
As this was a new property, if we factor in tax benefits for an income earner on $80,000 per year, there is an anticipated tax saving of around $5,500.
If we add this to the net income amount we see a positive monthly cash flow adjustment of $943!
Currently this will buy you a shiny new car to the value of around $50,000.
Now you can have your property investment that increases in value and rental returns, AND your new car with that new car smell.
Creative financing and smart investment purchases enable you to create wealth for your future, and hit your financial goals quicker.
For more info on buying a property that pays for your new car or any other wealth creation and protection strategy, simply fill in the form opposite to have our financial specialist contact you.