my view on the benefits of negative gearing
it's worked for me, i now have several i.p.'s
eg:-
personal income 40,000 taxable
8,980 tax
31,020 net to live on
with a i.p. costing 160,000 ( in my area ) with you own home fully paid / partly paid off and using both to borrow the whole amount.
i.p. rent @ 180 / week = 9,360 +
rates 1,100 -
insurance 550 -
maintenance 200 -
balance 7,510 +
interest only loan fixed for 5 years from ( anz 6.7%, cba 6.69%,
nab 6.59%, wbc 6.69% ) + $ 8 / month a/c fees
= 10,800 -
so new gross 47,510 +
= 36,710 +
capital allowance 2,850 - non cash expense
depreciation 900 - non cash expense
new taxable income 32,860 +
new tax payable 6,238 -
new net calculation 36,710 - 6,238 = 30,472
new net to live on 30,472
SO WOULDN'T YOU THINK IT WOULD BE GOOD TO HAVE A BRAND SPANKING NEW I.P FOR ONLY $ 548 A YEAR
IT'S JUST TOO EASY
it's worked for me, i now have several i.p.'s
eg:-
personal income 40,000 taxable
8,980 tax
31,020 net to live on
with a i.p. costing 160,000 ( in my area ) with you own home fully paid / partly paid off and using both to borrow the whole amount.
i.p. rent @ 180 / week = 9,360 +
rates 1,100 -
insurance 550 -
maintenance 200 -
balance 7,510 +
interest only loan fixed for 5 years from ( anz 6.7%, cba 6.69%,
nab 6.59%, wbc 6.69% ) + $ 8 / month a/c fees
= 10,800 -
so new gross 47,510 +
= 36,710 +
capital allowance 2,850 - non cash expense
depreciation 900 - non cash expense
new taxable income 32,860 +
new tax payable 6,238 -
new net calculation 36,710 - 6,238 = 30,472
new net to live on 30,472
SO WOULDN'T YOU THINK IT WOULD BE GOOD TO HAVE A BRAND SPANKING NEW I.P FOR ONLY $ 548 A YEAR
IT'S JUST TOO EASY