Working out Break Even Point with Property Investing Investors should know whether a property is making them money or costing them money. Taking into account any tax savings from claiming expenses it is a good idea to know how much a property would need to growth in value for it to break even. By this I mean to be costing you nothing. To do this - Step 1 Work out what a property is costing you, after tax, and annualise this. Step 2 Divide the value of the property by this amount. Example Johnno buys a property for $500,000 and gets a depreciation schedule done and works out all the other costs associated with the property. He calculates it is costing him $53 per week to hold. This is $2,756 per year. So his property needs to grow in value by at least $2,756 per year to break even. As a percentage this equates to $2,756/$500,000 = 0.55% So the property needs to grow just 0.55% per year for it to break even. Anything more than this and the property will be 'making' money for its owner. Keep in mind that if sold and the profits realised the profits can turn negative when buying and selling costs are taken into account. Note that this figure will change from year to year. It may increase as depreciation and other non-cash deductions decrease.