Reply: 2.1.1
From: Rolf Latham
Hi again
essentially 12 to 15 % gross rental return as a function of sales price.
So 200 k house, you want 460 + a week in rent. AS you can see this is not easy to do, especially in the Sydney Market.
Ta
Rolf
Reply: 1
From: Rolf Latham
Hi Sophie
You have hit ( or will hit) the normal snag of not enough cashflow to service liabilites.
There is no set formula. Lenders have very different models for calculating what is an acceptable cash flow surplus.
It is also not easy to say lender a or b is...