Tax time part 2: Planning for the new financial year

Martin Josselyn, 16 July 2014

Following on from an article in AR Developments’ last newsletter, in which I talked about a tax time checklist, I have been asked to write about the impact of these deductions on the average person, and what the true cost of holding an investment property might be…

So I have gathered up the details for one of AR Developments’ recent property offerings ‘Wynnum Woods’ and added the numbers together to give you a snapshot of how it works for you as a property investor.

tax

Let’s look at the variable assumptions I have used:

  • The Project:  Wynnum Woods
  • The Property Type: 3 Bedroom Townhouse
  • The Purchase Price: $397 500
  • The Rent: $410 per week
  • The Deposit: 10% + costs
  • The Interest Rate: 5.5%
  • The Clients Income: Combined Household Income (CHI) of $100 000 ($65 000 + $ 35 000)

Have a look below at the numbers combined, and then fill in your details to receive a free Property Investment Analysis for one of our new projects personalised to your circumstances

Martin Josselyn

 

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Details[attr style=”background-color:gray; color:black”],End of Year 1[attr style=”background-color:gray; color:black”]
Property Value, $397 500

Purchase Costs, $14 338

Deposit + Costs, $55 908

Loan Amount, $357 750

Equity, $39 750

Gross Rent/week at $410, $20 894

Cash Deductions,

Interest (I/O) at 5.05%, $18 066

Rental Expenses (Rates + Water + Body Corporate etc), $7 184

Pre-tax Cash Flow, $-4 356

Non-cash Deductions,

Depreciation of Buildings at 2.5%, $5 306

Depreciation of Fittings at $24 605, $3 435

Loan Costs at $1 820, $364

Total Deductions, $34 355

Tax Credit (joint) at $100 000 (CHI), + $4 759

After Tax Flow, + $403 p/a which is $15 per week cash flow positive

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[symple_button color=”blue” url=”http://ardevelopments.com.au/wp-content/uploads/2014/07/Wynnum-Woods-Property-Analysis.pdf” title=”Download” target=”blank” border_radius=””]Download the Full 10 Year Projections[/symple_button]

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Fill in your detail below to receive a personalised Property Investment analysis for one of our projects

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Martin Josselyn is a licensed agent, qualified financial planner and mortgage broker, and has over 15 years experience in direct property investment portfolios

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By | 2017-09-18T02:30:24+00:00 September 18th, 2014|Blog|