Hi,
I am looking at purchasing a 2nd rental property soon. I have only had my first property for 18months and don't really know how to work out what it is actually costing me a week. Things are financially under control but I want to know the weekly cost after tax breaks I will get etc...
I have a taxable income of $55000.
Current property:
Purchase price: $187000 (expect $220000 now), Rent return: $185p/w.
Owe: $100000 on loan (costs this year including interest were ~$8000).
Have done a depreciation report giving me ~$1500 return at this stage.
New proposed property:
Purchase price: $240,000 Rent: $220
Would owe full amount of $240000 (I have cash to pay legals/stamp duty etc).
Both IP's are in NSW state.
If someone who has been in my position before could break things down it would be awesome.
Brad.
I am looking at purchasing a 2nd rental property soon. I have only had my first property for 18months and don't really know how to work out what it is actually costing me a week. Things are financially under control but I want to know the weekly cost after tax breaks I will get etc...
I have a taxable income of $55000.
Current property:
Purchase price: $187000 (expect $220000 now), Rent return: $185p/w.
Owe: $100000 on loan (costs this year including interest were ~$8000).
Have done a depreciation report giving me ~$1500 return at this stage.
New proposed property:
Purchase price: $240,000 Rent: $220
Would owe full amount of $240000 (I have cash to pay legals/stamp duty etc).
Both IP's are in NSW state.
If someone who has been in my position before could break things down it would be awesome.
Brad.