Leonardo,

Can I ask you firstly where you have found a property for around 500k that you will be able to rent out for 800 per week? Also where did you get the information from that you’ll be able to rent it out for 800 per week and what does that rely on? as in have you thought if you use it as a holiday home you’d rent it of that much? or if you furnish it? or if you just have long term tenants?

Secondly, you need to make sure you calculate in stamp duty and fees etc (not sure if you already have done that, but I couldn’t see it from your post).

Tiffany

The load does get paid… but it gets paid at the end of a set term… in a big lump sum… so start saving! Someone posted just yesterday or something about banks not accepting the logic of selling the property to repay the load. they wanted some extra proof that you can pay the sum off.

some things with your sum that are different to mine though…..

you assumed there are exactly 4 weeks in a month.
i prefer to times the weekly rent by 52 (or 50 if i want a buffer for vacant days)
and then divide by 12 to get monthly

so 800 *4 = 3200
800*52/12 = 3466

As you can see quite different.

its a good rental return in my eyes. but do make sure you calculate the strata, rates etc…. cos they can kill any deal if they are too high.

some others might not think its as great a return, but its a 20% return on the actual cash you invested (before strata fees and taxes etc). and that sounds good to me.