Hi there,
Ive been doing some thinking about an IP I have in BNE. Below is the balance sheet as I see it.
Repayments -$368.00 $184.00 per week
B/Corp -$ 33.10 $215.00 every quarter
Rates -$ 47.50 $306.00 every quarter
Prop Mngr -$ 34.00 REA management fee
Insurance -$ 9.00 $235.00 p/a
Rental +$440.00 $220.00 per week
Balance -$ 51.00As you can see the property is not quit +CF if I include all of the above expenses.
My question is how can I make this property +CF.
The rent has recently gone up $10 p/w to the above so a rent increase is off the cards for now. there is $114,000 outstanding on the loan at around 6.25% interest.
Luckily I have had about 100k in CG since purchase 3 yrs ago so that is still a good 1st investment. But I would like to work this out.
Any thoughts?
Cheers,
RiffWhat the mind of man can conceive and believe, it can achieve.
please reply… anyone
]What the mind of man can conceive and believe, it can achieve.
Hey Riff,
Seen as no one else has replied i feel like i have a duty (*cough* Prop Guru etc [
], just kidding)Okay from what i can see:
Going Out Per Year
Repayments $9568
B/Corp $ 645
Rates $ 918
Prop Mngr $ 34
Insurance $ 235Total $11,400
Coming In
Rent $11,440
Total $11,440
And thats a difference of:
+ $40
Mabye I made a mistake some where but i checked it over three times! [?]
That means you should be earning $40 a year. Therefore it should be a positive cash flow property.
K, saying that i did make a mistake. Oone way that comes straight to mind is to offer something to Tenant for example: (this might already be there) Install air-con. on the condition that the rent will be increased $5-$10 per week.
Just a sugestion. Hope this helps.
Matt“If you do what you have always done, you will get what you have always had.”
“Isn’t it time for a change?”
Riffraf
$34 for property Manager…per year ??
Is the property valued at $214 000 and
renting for $184 P/Wk ?
Is that low or reasonable for the area ?Matt
Bodycorp $215 per 1/4 adds up to $860 p/yr on my calculator ?
As with Rates i got $306 per 1/4 = $1224
rent $11 440 ( at 52 weeks)
I worked it out to
Going Out Per Year
Repayments $9568
B/Corp $ 860
Rates $ 1224
Prop Mngr $ 34 ???
Insurance $ 235Total $11,921
Coming In
Rent $11,440
Total $11,440
And thats a difference of:
– $481
But just so you know.. and i’m wrong!
i’m “crap” at mathsPLUS- you say the rent has gone “up” $10 a week to the above so
$10 x 52 = $520 – $481 = + $39REDWING
“The man that thinks at 5o as he did when he was 20 has wasted 30 years of his life”
Don’t forget your tax effect !!!!
What is the interest, (not the repayments ), how old is the building, what is expected depreciation ????[?]
Manage it yourself.
Bruce
Mooloolaba, QldWell… everyone is looking at this from an anual perspective… so Im thinking there is a value to doing this?!
Here goes…
Purchased at $125,000.00
Still Owe Bank $114,000.00
Valued in November $220,000.00Repayments
$184 x 52 = $9,568.00
Prop Manager — $16.50 x 52 = $858.00
Rates
$306 x 4 = $1,224.00
B/Corp.
$215 x 4 = $860.00
Land Lords Insurence
= $235.00Total Anual Cost
= $12,745.00
Rental Income —- $220 x 52 = $11,440.00
Balance
= -$1,305.00[
]-$1,305.00[]I dont know about depreciation etc… how do I calculate that? what can I claim and how?
Could depretiation save me!?![
]What the mind of man can conceive and believe, it can achieve.
Can I claim tax for not being able to spell!?
What the mind of man can conceive and believe, it can achieve.
riff
It depends on the age of the property as to how much the depreciation will save you. If it’s post 1985/7 you can claim 4/2.5% of the actual building cost.
If it’s pre that time, you can only claim depreciation on any renovations, carpets, curtains, HWS, stoves etc. etc. etc.
You need to get a quantity surveyour to prepare a report for you to see how good it will be.
If it is a post 85 house, I reckon depreciation should cover your losses – but don’t quote me on that!![
]Cheers
MelRiffraff
Try and contact DEPPRO (Depreciation professionals)they have an office in every state i believe, i’ve used them and had no complaints [
]Tax depreciation is a benefit to the purchaser- not the builder, developer or the selling agent, and is calculated on both the purchase and construction price of the property.
irrelevant of the age of the property there still exhists an allowance on either the building or the plant content.Common areas can also be depreciated !
To ‘save’ $ have them do it in may ‘just’ before the end of the financial year , that way you get the cost of it back quicker.
It’s worth doing the depreciation aspect $$$ [
]REDWING
thinking of doing a depreciation post now hmmmm“The man that thinks at 5o as he did when he was 20 has wasted 30 years of his life”
]
], just kidding)
]
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