startofinish wrote:

Currently leased until February 2015 returning $1,999 per calendar month (499.75pw)

But yes, add insurance to that.

First post – Looking for some constructive feedback.

Really not sure why inner city apartments haven’t been mentioned?

For instance, whats wrong with this one?

Pruchase price: $255,000
Currently leased until February 2015 returning $1,999 per calendar month (499.75pw)
10% deposit of $25,500
Amount borrowed: $229,500 @ 6% is 343pw repayments (over 25 years)
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Worked out Per week
499.75 – 343 (repayments) = 156.75
156.75 – 85 (estimated expenses) = 71.75
71.75 * 52 = $3731pa income…. minus tax.
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Property in this area should also always be in high demand (although I dont know Melbourne that well) and has had growth of 4.8% over the last five years.

Just wanting to check to make sure im on the right track with finding positive cash flow property (with reasonable to good capital growth).

Also, is there reason why people do more than the minimum required deposit other than to lower the repayments?

Thanks guys.

• This reply was modified 10 years, 6 months ago by  startofinish. Reason: Part added: (with reasonable to good capital growth)