Positive cashflow properties
A dual income property in Fletcher, Newcastle purchased at $772,600 with a 20% cash deposit of $154,520 pays you $6,760 per year (p.a.) which equals $130 per week (p/wk) based on the following calculation:
Rent & Expenses
Interest ($31,714) + property costs ($8,061)
|Total tax deduction||$15,990|
|Tax refund @39%||$6,275|
Annual rent combined: $320 p/wk (rent 1) + $470 p/wk (rent 2) = $790 x 52 weeks. Interest only loan at 5.0% x $634,274. An initial purchase cost of $12,484 is needed to cover stamp duty, legal and loan fees and construction holding costs (approximate after tax). Mortgage insurance does not apply to this scenario. Property costs factor in a 2.5% vacancy rate; depreciation available only for new properties. Tax refund based on second highest tax bracket (37%) plus Medicare levy of 2%. Calculation based on the first year.