A property that pays for your new car?

(This article forms part of our Cars and Property series)

Sound too good to be true?

Cars and Property. Two of the biggest purchases we usually ever make. Sure, one is much larger than 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.

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 if our clients are looking at cars and property, after a property purchase, then they 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.

Lets use a live and recent example:

A Brisbane 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:

Purchase             $520,000
Deposit               $104,000
Loan                    $416,000
Rent                     $34,320 ($660 x 52 weeks)
Costs                   $6,864 (20% of rental)
Interest                $21,632
Net Income         $5,824 ($485 per month)

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 final monthly cash flow adjustment of
$ 943!

Lets go to the car yard!

Currently just under $1000 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, paying for your new car, with that new car smell.

Creative financing and smart investment purchases enable you to create wealth for your future, and hit those financial goals quicker. 

For more information on buying property that pays for your new car or anything property related, contact us via 1300 66 77 89 or via email here.

Since 2004 Scott Northcott has been helping people buy the best properties for their needs at prices that simply speak for themselves.
Scott has been instrumental in bridging the gap between financial planning and traditional real estate transactions through his property advice model. By carefully considering his clients’ goals and planning for market changes via demographics and trends, Scott designs a future proof outcome not only specific to the client’s needs but dynamic in its execution with performance indicators and exit strategies built in.