Should I Buy A Cheap Or Expensive Property?

Case study:
Tom has $500,000 to spend on an investment property. He decides to buy a property worth $300,000. Claire also has $500,000 to spend on an investment property. She decides to buy a property worth $500,000. Both Claire and Tom put down a 10% deposit. This means Tom puts down $30,000 and Claire puts down $50,000. Both Tom and Claire hold their properties for 20 years. Their properties both go up by an average of 5% per year over 20 years. At the end of the 20 years,​ Toms property is worth $792,000 and Claires property is worth $1,320,000. Claire is $528,000 better off than Tom, although she only put down an extra $20,000 of her own money. This is the power of compound growth and buying a more expensive property earlier in your journey*.

* This is not financial advice​ or relevant to your situation in any way.

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By the end of your session you’ll have identified:

  1. Where you are right now in terms of your property investing goals.
  2. Where you want to be by the time you retire.
  3. The roadblocks currently holding you back from achieving your goals and how to address them.
  4. Your next action steps.

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DISCLAIMER No Legal, Financial & Taxation Advice The Listener acknowledges and agrees that: • Any information provided by us is provided as general information and for general information purposes only; • We have not taken the Listeners’ personal and financial circumstances into account when providing information; • We must not and have not provided legal, financial or taxation advice to the Listener; • The information provided must be verified by the Listener prior to the Listener acting or relying on the information by an independent professional advisor including a legal, financial, taxation advisor and the Listener’s accountant; • The information may not be suitable or applicable to the Listener’s individual circumstances; • We do not hold an Australian Financial Services Licence as defined by section 9 of the Corporations Act 2001 (Cth) and we are not authorised to provide financial services to the Listener, and we have not provided financial services to the Listener.

Ben Everingham

About

Ben founded Pumped On Property after building a multi-million dollar property portfolio over a 5 year period. His mission is to show you how to replace your income through property investing so you can do what you love…full time.