All Topics / The Treasure Chest / Buying property to negative gear

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  • Profile photo of quaylgrequaylgre
    Member
    @quaylgre
    Join Date: 2003
    Post Count: 0
    July 18, 2003 - 4:22 am

    After your thoughts
    on buying a property at $230,000 with all fees and charges.
    interest only on the $230000
    Rental income will be $10000-$11000 per annum
    Rates $2000 per annum
    Agents fees $700 per annum
    General maint/insurance $1000 per annum
    I am in the top tax bracket
    I would appreciate any feedback

    Profile photo of MJKMJK
    Member
    @mjk
    Join Date: 2003
    Post Count: 157
    July 18, 2003 - 6:56 am

    Based on the figures you posted you will be losing money every year until you cash in on your anticipated capital gain. Make sure this property is likely to grow in value in the time frame you want it to or else try to find something more neutrally geared or positive.
    What area are you looking at and what type of property ?

    MJK

    Profile photo of dr housedr house
    Participant
    @dr-house
    Join Date: 2001
    Post Count: 281
    July 18, 2003 - 9:32 am

    Doing similar for just one 6 year old, extremely well-maintained property on the gold coast (30 k inland), in a strong rental demand area.
    the gold coast is going through a huge upswing and growth phase, so at 250,000, we thought it was a good price.
    we have brought this one in our names, we are hoping to eventually live there for a little while.
    We do plan to get a whopping depreciation schedule and reduce our taxable income.
    How ever, our other properties are cash pos or sudiv. potential, wouldn’t want too many cash flow neg.properties.

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