Hi there people,
Firstly I`d like to say thanks to all those who contribute to this forum for providing alot of help and encouragement.
Quick intro I`m 24, own PPOR valued at $220,000 with $90,000 outstandin on loan. Have been reading and researching, personaly i favor CF+ investments. I have been searching and this is my first glimmer of hope they do exist.
Would greatly appreciate any feed back on figures, or anything I`ve overlooked
Location: Melbourne CBD
Purchase Price: $170,000.00
Stamp Duty: $6000.00
Toal Purchase Cost: $177,000.00
Intrest p/a: $13260.
Body Corp: 1700
Rental Income p/a: $13,000.00
Depreciation(building + fixtures etc) p/a: $4,000.00
Personal Income without IP;
Gross income: $75,000.00
Tax : $17,475
Nett Income : $57525.00
Cash in Hand per week: $1,106.00
Personal Income with IP;
Gross income: $75,000.00
Rental income: $13,000.00
Property Cost (intrest + expenses): $15,530.00
Total Depreciation: $4000.00
New taxable income: $68,500.00
New tax: $15,585.00
New Cash in Hand per week
-Property Cost $15,530.00
-New Tax: $15585.00
New Cash in Hand per week:$1093
So basicaly it will cost me $13 a week to own this property. The figures are rough at this stage but thought it was worth considering. Also during all these calculations which I followed from Margret Lomas book, the princable part of the loan repayments is not mentioned. I gather this is just added to the weekly cost of the investment.
Thanks for the help
Patdr houseParticipant@dr-houseJoin Date: 2001Post Count: 281
don't go for anything "managed", you are not in control and avoid student apartments at all costs.
Yes it`s a 1 bedroom studio appartment without a car park on title.
Yes it sounds like it`s "managed" by the body copr` where they take care of maintenance, tenants, etc.
I should be getting the Sec 32 today. Does this sound like serviced apartments? Have you guys had bad experiance with this type of setup? Thanks for your help.
Why don't you simply ask who the tenant is? Sounds like a serviced apartment or hotel mob for sure. You will find plenty of literature on this site about such things. Search for "serviced apartment" and you'll see everyone's opinion, which in summary is that they do not have the capital growth of regular properties, and to stay away as a result.
You should also be aware that often banks require the property to be of minimum size (I've got the figure of 50sqm, but do not quote me) before they'll finance on it. Often studio apartments do not make the cut due to being too small for the bank's happiness.
By the way, if it turns out the tenant rents from you and on-rents to the residential market, be careful if it is one of those "rent guaranteed for one year" type arrangements, whereby who knows what will happen after that. They may artificially inflate the rent to make you think it is a sweet deal (and price the property accordingly). Often after a year, deals go sour due to this.