I prefer not to assume 52 weeks occupancy...... try 48 or 50 as delays can often happen with getting a tenant in.
That is a good rental return presuming there are no body corp fees etc.
Isnt return based on "you should get atleast 0.1% a week based on the cost"?
So $400,000 * 0.001 = $400 a week. Or is this something a few people just made up, or a general guideline?
So, im thinkin out aloud here and will probably embarass myself by showing my total ignorance...
In real simple terms, if I borrow my $400k @ 6.25% and rent out at $500 pw, (6.25% yeild thanks winston), Im breaking about even re interest only re-payments?
I wont need my neg gearing income tax deductions to hold this prop long term?
I cant be right, this sounds too simple.
am trying to sum up a potential IP.
Whats the simple calc for summing up property.
In this case, IP will cost me $400K (100% borrowing), ill rent it for $500 pw.