Property Investment
What does it cost to Purchase an Investment property ?
Less than $100 a week for most investors ….
| Below is a sample Cash Flow …..Purchasing a typical 2 bedroom apartment in Melbourne – Purchase price $ 470,000
Baught Off- the- plan so NIL Stamp duty on Building Value Assumptions: Local Investor, currently earning an income of $ 90,000 with no other tax deductions. Projected cash flow in Year 1: |
| Cash In: | |
| Gross Rent | $23,400 at $450 a week |
| Cash Out: | |
| Interest | $30,090 at 6% pa |
| Rental expenses | $6,005 |
| Pre Tax Cash Flow: | -$11,405 |
| Cash Deductions: this is the amount, that is deducted from your taxable Income, hence saving you Tax | |
| Interest paid | $30,090 |
| Property expenses | $6005 |
| Depreciation | $10,620 |
| Loan Costs | $554 |
| Total Deductions: | $45,425 |
| Income tax Credits: | 7,738 |
| After Tax cash Flow | -$ 3,667 |
Your net cost in year one after you receive rent, pay all the property costs and receive your tax deduction, which can be received throughout the year, your total cash cost in year one is $3,667 Or $ 71 per week