Investment Property Calculator

How do I know if this is a good property?

Well, that's a pretty good question! The answer is “Crunch the numbers first!” 

Use an investment property calculator.

I hope you’re not basing and of your deciosns on the property’s “looks” or whether you’d personally want to live in it yourself.

By the name of  this blog you might've guessed that I’m a lot more interested in the return on the investment and what the numbers tell you and NOT how pretty it looks.
Now, whilst it’s true that when I’ve bought something for me to live in I want to “love”, when I’ve bought any investment property  in the last 10 years there only one question I ask myself.

 Does buying this property help me to reach my goal?

For me this is a simple Yes or No question. Does it get a tick?

How can you answer that question unless you have your own goal in sight?

My own goal that I've set for myself is to grow my cashflow positive real estate portfolio. So for me it’s now easy. Before I will even look at a picture or an address (well perhaps there’s streets and towns I’ll filter out!) I’ll want to know 2 basic things!

What’s the asking price?

What is the rental ?

To me these are also going to be questions that quickly help me answer the question – 

Is this a good property?

In fact you should write out a goal for the numbers you want your property to return before you even start looking.

Then and only then can you use a property investment calculator to analyse your next investment purchase.