Yes but a) the number is based on 80% purchase costs instead of 105% and b) you have only taken the loan repayments as the outgoings - what about the insurance, water rates, strata, etc?
Thanks heaps, and all good points.
I imagine the $75/$120 weekly cost difference would cover outgoings, bringing the equation into equilibrium. Sound about right?
(not to mention, the added bonus of deductions from converting my PPOR into an IP).
From the input of others, I'd be very hard pressed to go beyond an 80% lend. Was the 105% figure you mentioned 100% lend + purchase costs?
Thanks.
p.s. Once again to clarify, just putting ideas out there for feedback.