Neutrally geared properties

[PEI]

A question regarding neutrally geared properties?

I guess I'm interested in other peoples blueprint of what they generally look for when trying to find a neutrally geared property? Not positive!

Due diligence also needs to be done but what are the key questions you ask or the information you want to know prior to moving onto the next step.

Assumptions:
- fixed interest at 7%
- PAYG highest tax bracket

i.e.
5% - 6% Yield
Building value
Plant value
etc
etc

 

[sbe]

There's so many factors that go into calculating this.....

Your best bet is to get something like Somersoft's PAI, or POSH's or one of those, and play with the figures.

Things that matter

Your pay/salary
Purchase structure
Cost price
Rent income
Depreciation (& is building claimable ie post 85)
Holding costs - rates, interest, body corp etc.


Basically, punch your salary into these programs, and you can play with different scenarios.

There's a million ways to hit neutral gearing (or negative / positive for that matter). First, decide your area / purchase range, then play with the rest to see what works or doesn't.

Better to teach you to fish than just give you the fish.....

Cheerio

Simon.