Hi, I am wanting someone with experience to detail running costs vs rent of their investment property over a number of years - attaching a spreadsheet would be great. I dont understand how people become positively geared after say 5 years. I have run calculations on my spreadsheet (attached) detailing yearly running costs vs rent showing the shortfall each year. Can someone confirm that these calculations look right.
It looks depressing. I have done this calculation over a 30 year period and it only starts to be positively geared at year 30!! Please refer to attachment for property specs. I have only showed a 5 year timeline. But the net holding costs only seem to increase by $350 per year.
Even with property attracting 7% yield it takes about 23 years to be truly positively geared (according to my spreadsheet). Assumptions are attached in the image.
It is deterring me from purchasing more property.
Your insight would be much appreciated.
It looks depressing. I have done this calculation over a 30 year period and it only starts to be positively geared at year 30!! Please refer to attachment for property specs. I have only showed a 5 year timeline. But the net holding costs only seem to increase by $350 per year.
Even with property attracting 7% yield it takes about 23 years to be truly positively geared (according to my spreadsheet). Assumptions are attached in the image.
It is deterring me from purchasing more property.
Your insight would be much appreciated.