Forum Replies Created
couple of figure to look @
borrowing 1.4 mill @ 7.5% = $105000 P/A
7x 225 p/w = $81900
shortfall of $23100
thus each partner would have to cough up approx $12500 each per annum approx $220 each per week claimable on tax as is the interest so progected tax benefit @ approx 30% is
loss $23100
interst$ 81900
detuctibles eg deprectation etc on buildings etc etc maybe $25000 so tax benfits might be approx = $130000 @ taxable rate of 30% = return to us of $39000 not sure if this is all dodgey accounting can anyone help me outHi jo
yes its a scary thought but with tax benefits and the historical data that suggests that property increases approx 10% P/A and the fact your having tenants paying your homes off is a great temptation I guess expected rental would be in the range of 200-235 per week per property my partner and I understand we would have to pick up the shortfall but he and myself have cash on hand to cover things for approx 12 months we would actually like 15 IP’s so double that exposure to 2.5 mill!!we live in sth aus and the IP’ we are looking @ are between 170-200 thou I know steve recommends buying in rural areas but as I have just found out by buying an acre of land that the lenders dont like to lend against rural areas I had a couple of knockbacks due to it being rural..
thanks for your quick reply couple of things
1:would the 100000 against my home be as well as my partners 100000 therfore $200000 all up
@: this would only give us enough money for approx 7 homes @ 80% LVR how would we then acheive the needed finance for the next IP? I understand the 80% LVR because of mortgage insurance but wouldnt it be better to borrow 95% LVR get more properties and just pay the mortgage insurance and claim it on tax
