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So if you put in a thousand dollars into a term deposit at three percent, then you’re getting a three percent cash on cash return. Now if you’re making an investment in say a term deposit at a bank, this is a really simple calculation to do your cash on cash return is whatever they give you back. So cash on cash return simply is how much cash you’re getting back for the amount of cash that you put in. So let’s have a look at what exactly is cash on cash return. So cash and cash return before tax of two point eight percent. So we scroll down, we can see the cash on cash return before tax as well as after tax. Another way to look at it is the cash on cash return. Uh, and to say how much are we going to get per week? And so we have a weekly cashflow before tax of about 36, $37. So this calculator, we’ll go through and look at the expenses of the property, look at maintenance, your interest repayments, etc. Let’s go ahead and put in the asking price of $249,000. So what I’m gonna do is I’m going to go to a property dot a u, which is a calculator that I created myself to do these calculations. Renting for about 3:50, two, three 60 per week. So here we have a property in Mount Austin which is near Wogawoga and it’s asking price is 249,900. So what we’re gonna do is we’re going to look at a specific property here and look at what the cash on cash return is, which is gonna. I help people achieve financial freedom and understanding your numbers is really important towards achieving financial freedom. Hi, I’m Ryan from on-property dot com dot EU.
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One of those is cash on cash return, and in this episode I want to talk about exactly what cash on cash return is and why you may want to use this metric to work out whether or not your property is performing as well as it could, and also show you how to calculate it as well.
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There’s so many different ways that you can measure growth.
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People look at capital growth, they look at cashflow. There are many different ways to measure the success of an investment property and there’s many different metrics you can use to determine whether or not the property is successful. The 2 Key Elements For Financial Freedom Transcription: But what exactly is cash-on-cash return, why is it useful and how do you calculate it? Resources Related To This Episode Cash-on-cash return is a way to measure the success of a property investment.