EP: 2330
Why Your Rental Is 'Losing' Money (Even When It's Not)⎟Ep. 2330
Your property makes $100 a week in cashflow — so why does your accountant say you lost $33,000 this year?
In this episode, Ed and Andrew explain the confusing gap between what your bank account shows and what your tax return says.
Spoiler: they're measuring two completely different things.
You'll learn:
-Why cashflow and profit are NOT the same thing
-How depreciation can turn a small surplus into a big "loss" on paper
-Why a property showing a profit might still be costing you cash
-What you should actually focus on as a property investor
This episode clears up one of the most common misconceptions in property investing — and helps you understand what your accountant is really telling you.
Want to quickly calculate your investment property's cashflow? Use our cashflow calculator to find out.