Positive cashflow properties
A dual income property in Medowie, New South Wales purchased at $705,387 with a 20% cash deposit of $141,078 pays you $8,892 per year (p.a.) which equals $171 per week (p/wk) based on the following calculation:
Rent & Expenses
Interest ($28,748) + property costs ($8,151)
|Total tax deduction||$11,707|
|Tax refund @39%||$4,566|
Alternatively with just a $1,000 deposit, the positive income would be
Annual rent combined: $450 p/wk (rent 1) + $350 p/wk (rent 2) = $800 x 52 weeks. Interest only loan at 5.0% x $574,960. An initial purchase cost of $9,989 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 0.9% 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.