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
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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=”https://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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