Guys,
please tell me I'm wrong somewhere...
I am considering rent my house instead of selling it. But this is madness!!! I will be adding 10K per year for this silly "investment" until rent will double...
The only hope is capital gain - and by the way, it will be taxed.
How much appreciation anyone can expect??? 25K per year? This is unrealistic...
Scenario: 350K house is let for 300 pw. Excel file is attached.
Income:
weekly rate 300
Agent commission 7%
effective weekly income 279
weeks in a year 52
weeks vacant 3
effective weeks 49
yearly income 13671
Expenses:
Loan amount 320000
(Investor will pay 5% of the value plus 19K stamp duty up front.
I'm not paying anything up front because I already own the house....)
Interest rate 7.46 (best rate - Homepath)
Monthly interest only repayments 1989
Yearly repayments 23868
Landlord insurance 300
Maintenance 500
Council rates 780
Accountant fee 80
Yearly expense 27517
Yearly cost 13846
Tax Concession(neg gearing) 4153.8
Effective cost 9692.2
Try to play with the weekly rate. You need to DOUBLE IT - 600pw in order to get even....
please tell me I'm wrong somewhere...
I am considering rent my house instead of selling it. But this is madness!!! I will be adding 10K per year for this silly "investment" until rent will double...
The only hope is capital gain - and by the way, it will be taxed.
How much appreciation anyone can expect??? 25K per year? This is unrealistic...
Scenario: 350K house is let for 300 pw. Excel file is attached.
Income:
weekly rate 300
Agent commission 7%
effective weekly income 279
weeks in a year 52
weeks vacant 3
effective weeks 49
yearly income 13671
Expenses:
Loan amount 320000
(Investor will pay 5% of the value plus 19K stamp duty up front.
I'm not paying anything up front because I already own the house....)
Interest rate 7.46 (best rate - Homepath)
Monthly interest only repayments 1989
Yearly repayments 23868
Landlord insurance 300
Maintenance 500
Council rates 780
Accountant fee 80
Yearly expense 27517
Yearly cost 13846
Tax Concession(neg gearing) 4153.8
Effective cost 9692.2
Try to play with the weekly rate. You need to DOUBLE IT - 600pw in order to get even....