I have 1 IP, and am doing the figures on purchasing another one.
I have looked at purchasing a $450,000 house. These are the stats:
5 year fixed rate 7.79% CBA: $35,055pa
Rent expected: $20800pa
Costs: $4500
Total gross holding cost: -$18755pa
negative gearing tax refund : $5626
deprecation tax refund: $4000
net holding cost: $9129 or $760 per month
Seems like allot to hold this property, and I dont see how I can buy a third one for like 10 years till this IP becomes cash flow neutral.
Am I working this out correctly?
This seems like a big commitment, its ok while I'm living at home, but I plan to move into IP 1 in a year or two, so add $760pm ontop of mortgage commitment of $1500pm is allot to swallow.
Looks like I need to lower the commitment on IP1 before I move in before I consider a second IP..
Any ideas, how are others doing it?
I have looked at purchasing a $450,000 house. These are the stats:
5 year fixed rate 7.79% CBA: $35,055pa
Rent expected: $20800pa
Costs: $4500
Total gross holding cost: -$18755pa
negative gearing tax refund : $5626
deprecation tax refund: $4000
net holding cost: $9129 or $760 per month
Seems like allot to hold this property, and I dont see how I can buy a third one for like 10 years till this IP becomes cash flow neutral.
Am I working this out correctly?
This seems like a big commitment, its ok while I'm living at home, but I plan to move into IP 1 in a year or two, so add $760pm ontop of mortgage commitment of $1500pm is allot to swallow.
Looks like I need to lower the commitment on IP1 before I move in before I consider a second IP..
Any ideas, how are others doing it?