Kessie,
The 70k is included in the 310k loan and is sitting in account waiting for redraw when needed.
Yes, rates, agent fees etc all cost extra and would certainly eat into the 3k or more of the 8k she gets for depreciation (which was a low estimate by the way) BUT rates, agent fees etc are also DEDUCTIBLE so she would actually get more back in her pay to cover that..... so she would still be cashflow positive, or pretty close to it after tax. BUT she is quite happy to put in some of her own pay if necessary to build her wealth - better than savings in the bank. Over time depreciation will go down, but rents will go up and even negatively geared properties start to pay for themselves.
Seaview
The 70k is included in the 310k loan and is sitting in account waiting for redraw when needed.
Yes, rates, agent fees etc all cost extra and would certainly eat into the 3k or more of the 8k she gets for depreciation (which was a low estimate by the way) BUT rates, agent fees etc are also DEDUCTIBLE so she would actually get more back in her pay to cover that..... so she would still be cashflow positive, or pretty close to it after tax. BUT she is quite happy to put in some of her own pay if necessary to build her wealth - better than savings in the bank. Over time depreciation will go down, but rents will go up and even negatively geared properties start to pay for themselves.
Seaview
