ok so after lots of reading (and still doing lots and lots) I have started to try and work out some numbers on some properties for sale purley as practice just to try and get my head around everything a bit better. I would love some feedback especially the bad, just play nice
This is my first practice run...
Ok property is on the market for $209000 ( I havent actually been to see it)
(expected rent to be 260ish)
Now If I get a loan for $110 000 and using the interest rate of 8.36% fixed for 15 years (is this even a good idea?) repayments would be $842 per month.
I expect stamp duty/startup fees to be approx $6500 (this is using calculators and such that are provided on bank websites)
Plus legal fees and pest/building inspections which i am not really sure how much but estimating around the $1500 mark?
This would mean I would be up for approx $110 000 (rounding up a bit) cash straight up. Does this sound right?
So working on having $2856 after loan repayments each year do you think It is possible to have a place like this service itself or close to? (Is that even the right term to use?)
Not sure on rates and things like that. What else am i missing?
I have the capability to get a higher loan/put more actual cash into it to make it work better.
This is purley a hypothetical situation (using a real house on the market) As i would obviously run everything past an accountant first. I am just hoping I am starting to get my head around everything and not completely off track.
This is my first practice run...
Ok property is on the market for $209000 ( I havent actually been to see it)
(expected rent to be 260ish)
Now If I get a loan for $110 000 and using the interest rate of 8.36% fixed for 15 years (is this even a good idea?) repayments would be $842 per month.
I expect stamp duty/startup fees to be approx $6500 (this is using calculators and such that are provided on bank websites)
Plus legal fees and pest/building inspections which i am not really sure how much but estimating around the $1500 mark?
This would mean I would be up for approx $110 000 (rounding up a bit) cash straight up. Does this sound right?
So working on having $2856 after loan repayments each year do you think It is possible to have a place like this service itself or close to? (Is that even the right term to use?)
Not sure on rates and things like that. What else am i missing?
I have the capability to get a higher loan/put more actual cash into it to make it work better.
This is purley a hypothetical situation (using a real house on the market) As i would obviously run everything past an accountant first. I am just hoping I am starting to get my head around everything and not completely off track.