Positive cashflow properties
A dual income property in Hamlyn Terrace, New South Wales purchased at $771,793 with a 20% cash deposit of $154,359 pays you $7,332 per year (p.a.) which equals $141 per week (p/wk) based on the following calculation:
Rent & Expenses
Interest ($31,522) + property costs ($8,179)
|Total tax deduction||$14,323|
|Tax refund @39%||$5,586|
Alternatively with just a $1,000 deposit, the positive income would be
Annual rent combined: $460 p/wk (rent 1) + $350 p/wk (rent 2) = $810 x 52 weeks. Interest only loan at 5.0% x $630,432. An initial purchase cost of $12,336 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 1.6% 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.