Property Wealth Hub  ·  Foundations
Module 2 of 4  ·  Foundations

Finance
Fundamentals

Understanding how money moves in property — income, expenses, cash flow, and tax — before your first purchase.

9 min
📖 4 lessons
📝 Module quiz

What you will learn

Four things to understand before you start the lessons.

01
Cash flow basics

Gross yield, net yield, and the real cost of holding a property once all expenses are counted.

02
Negative vs positive gearing

When negative gearing works in your favour and when it becomes a trap.

03
Tax deductions available

Depreciation, interest, rates, insurance, management fees — what is deductible and when.

04
Ownership structures

Individual, company, or trust — the decision you must make before you buy, not after.

The real cost of ownership

Most investors underestimate holding costs by 30–40%.

💡 Rule of thumb: budget 1–1.5% of property value per year for holding costs on top of your mortgage. On a $700K property that is $7,000–$10,500 per year before interest.
Up to $15,000
in annual tax deductions on a typical investment property

Including depreciation on building and fittings, interest, management fees, rates, insurance, and repairs. A quantity surveyor report unlocks the full depreciation entitlement.

You are ready to begin

4 lessons, approximately 9 minutes. Complete the quiz to unlock the next module.

In this module
Cash flow and yield
Negative vs positive gearing
Tax deductions
Ownership structures
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