Positive cashflow properties
A dual income property in Narangba, Queensland purchased at $603,283 with a 20% cash deposit of $120,657 pays you $6,708 per year (p.a.) which equals $129 per week (p/wk) based on the following calculation:
Rent & Expenses
Interest ($24,664) + property costs ($7,474)
|Total tax deduction||$11,205|
|Tax refund @39%||$4,370|
Alternatively with just a $1,000 deposit, the positive income would be
Annual rent combined: $400 p/wk (rent 1) + $280 p/wk (rent 2) = $680 x 52 weeks. Interest only loan at 5.0% x $493,274. An initial purchase cost of $9,986 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.