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.


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


Investment Analysis Projections

Details End of Year 1
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
Download the Full 10 Year Projections

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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