Hi Everyone, I'm new here and keen to learn.
Thank you everyone for contributing to this awesome forum and passing the knowledge on. I will be doing the same as soon as I can.
Question. How to calculate cash flow before buying my first IP?
For example, The following figures are a bit of guess work. Please let me know if i'm in the ball park or if I've overlooked something(s).
Price = 400k
Deposit = 40k
Loan = 360k (assume no lmi)
Stamp duty = 15k
Income
Rent p.w. = 440
Rent p.a. = 22,800
Expenses
Mortgage repayments = 21,600 p.a. (assume 6% x 360k)
Prop Mgt fees = 1600 p.a. (7%)
Maintenance/repairs = 2000
Vacancy = 880
Landlord insurance = 1000
Council rates = 1000
Misc = 500
Total exp = 27,582
Net cash flow before tax = -4,700
Depreciation (say 3k x 37% tax rate) = 1110
Net cash flow after tax = -3590 or -70 p.w.
Let me know if I'm on the right track?
Thanks guys
steve
Thank you everyone for contributing to this awesome forum and passing the knowledge on. I will be doing the same as soon as I can.
Question. How to calculate cash flow before buying my first IP?
For example, The following figures are a bit of guess work. Please let me know if i'm in the ball park or if I've overlooked something(s).
Price = 400k
Deposit = 40k
Loan = 360k (assume no lmi)
Stamp duty = 15k
Income
Rent p.w. = 440
Rent p.a. = 22,800
Expenses
Mortgage repayments = 21,600 p.a. (assume 6% x 360k)
Prop Mgt fees = 1600 p.a. (7%)
Maintenance/repairs = 2000
Vacancy = 880
Landlord insurance = 1000
Council rates = 1000
Misc = 500
Total exp = 27,582
Net cash flow before tax = -4,700
Depreciation (say 3k x 37% tax rate) = 1110
Net cash flow after tax = -3590 or -70 p.w.
Let me know if I'm on the right track?
Thanks guys
steve