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b'ARVE Error: Mode: lazyload not available (ARVE Pro not active?), switching to normal mode\\n\\n\\n\\n\\n\\n\\n\\n\\n{"@context":"http:\\\\/\\\\/schema.org\\\\/","@id":"https:\\\\/\\\\/onproperty.com.au\\\\/cash-on-cash-return-in-property-investing\\\\/#arve-youtube-rn5g6p6ajzu659a0b2d415cd728754328","type":"VideoObject","embedURL":"https:\\\\/\\\\/www.youtube-nocookie.com\\\\/embed\\\\/rn5G6P6AjZU?feature=oembed&iv_load_policy=3&modestbranding=1&rel=0&autohide=1&playsinline=0&autoplay=0"}\\n\\n\\n\\n\\n\\nCash-on-cash return is a way to measure the success of a property investment. But what exactly is cash-on-cash return, why is it useful and how do you calculate it?\\nResources Related To This Episode\\nProperty Tools\\n\\nThe 2 Key Elements For Financial Freedom\\nTranscription:\\nThere 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. People look at capital growth, they look at cashflow. There\'s so many different ways that you can measure growth. 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. Hi, I\'m Ryan from on-property dot com dot EU. I help people achieve financial freedom and understanding your numbers is really important towards achieving financial freedom. 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.\\n\\nHelp us talk about it. So here we have a property in Mount Austin which is near Wogawoga and it\'s asking price is 249,900. Renting for about 3:50, two, three 60 per week. So what I\'m gonna do is I\'m going to go to a property tools.com dot a u, which is a calculator that I created myself to do these calculations. And it also does cash on cash return. So here we are in the calculator. Let\'s go ahead and put in the asking price of $249,000. Two hundred 49,000, 900 renting for. We\'ll put 3:50 per week. So this calculator, we\'ll go through and look at the expenses of the property, look at maintenance, your interest repayments, etc. And so we have a weekly cashflow before tax of about 36, $37. So thAt\'s one way to look at it. Uh, and to say how much are we going to get per week?\\n\\nUh, it\'s about $2,000 per year. So not a huge amount of money. Another way to look at it is the cash on cash return. So we scroll down, we can see the cash on cash return before tax as well as after tax. So cash and cash return before tax of two point eight percent. So let\'s have a look at what exactly is cash on cash return. So cash on cash return simply is how much cash you\'re getting back for the amount of cash that you put in. 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 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. You\'re getting three percent back of the cash that you put in.\\n\\nwith property it\'s a little bit different because you\'re putting in a deposit and then you\'re borrowing money from the bank in order to purchase that property. So what the cash on cash returns looking at is how much cash are you getting back each year in terms of positive cashflow and how does that compare to the amount of cash you put into the deal in terms of your deposit as well as stamp judy and other closing costs as well. So why is this useful? I think this is useful because it allows you to compare your investment to other investments that are out there in terms of putting your money in a term deposit, in terms of putting your money in the stock market, et cetera. So before you even take into account capital growth and how much money you can make,'