“For a perpetual portfolio, you need $3 million of investment assets in today's dollars... I've assumed a real return of 4.15% (3.5% income and 4% capital growth)”
SW
Stuart Weems
Investopoly ·
“We actually cap it at 5%, so you can't go above 5% capital growth rate… Australian average has performed at 6.8% historically, that's why most platforms use 7%.”
The Elephant In The Room Property Podcast | Inside Australian Real Estate · Are Investors Getting the Wrong Property Advice?
Play from 10:51
10:51
Audio streams from the publisher’s own feed. Verbatim does not host or copy it.
What was described
Cap the assumed capital growth rate at 5% in the modelling tool
5% (capped), 7% (typical industry assumption), 6.8% (historical Australian average)
Said nearby on the same subject
“Let's say we earn 10%. Let's say inflation is 3%. If I only spend 7% of the return, I'll leave 3% to be reinvested... I've assumed a real return of 4.15% (3.5% income and 4% capital growth)”
SW
Stuart Weems
Investopoly ·
“If you focus on capital growth… the heavy lifting is done by the equity and the capital growth you get from the actual asset”
RS
Ravi Sharma
Personal Finance with Ravi Sharma | Australian Finance & Property Podcast ·
“I never underwrite to a lower cap rate… if cap rates increase, you totally miss your mark.”
FP
Frank Patilano
Ironclad Underwriting Podcast ·
Moments like this, every Monday
The strongest new moments on your topics, in the speakers' own words. Free for three topics.
No card. No password. One-click unsubscribe.
Track a competitor?
Pro watches up to 25 names or phrases and emails you the morning after they are said.
See Pro, $29 a monthVerbatim quotes a short extract and links to the episode; the episode belongs to its publisher. Remove a show.