All Topics / Help Needed! / Help with figures

Viewing 2 posts - 1 through 2 (of 2 total)
  • Profile photo of RegrowRegrow
    Member
    @regrow
    Join Date: 2004
    Post Count: 77
    August 30, 2004 - 10:38 am

    Hello everyone,

    I was wondering if anyone could tell me if the following property figures would be classed as +CF,-CF or neutral, taking into account depreciation and income etc.

    Property would have capital depreciation of 2.5% 2.5% of $195000 = $4875
    Taxable income: $58000
    Tax payable: $13572 (2004-2005 tax codes)

    Rent = 180
    Occupancy rate ‘3 Weeks’ = 94.23 Percent
    Asking price = $195000

    Closing costs:
    Deposit 23.2 Percent = $38240.00
    Legal fees = $580
    Stamp duty = $0
    Mortgage app fees = $600
    Mortgage insurance = $0
    Valuation fees = $0
    Other borrowing costs = $1000
    Clean up costs = $0
    Inspection costs = $320
    Other costs = $0
    Total closing costs = $40740.00

    Mortgage details:
    Loan Priniple and Interest = $149760.00
    Interest rate = 6.57 Percent
    Term = 30 Years
    Weekly mortgage repayments = $220.04
    Total repayments for life of loan = $343256.40

    Annual costs:
    Management fees 7 Percent = $617.34
    Letting and advertising = $0
    Body corp fees = $0
    Rates = $600
    Utility rates and fees = $0
    Insurance = $350
    Miscalanious costs = $0
    Land tax = $300
    Maintenance 4 Percent = $352.77
    Other ownership costs = $0
    Total annual costs = $2220.11

    Summary:
    Total annual rent = $8819.20
    Total annual mortgage = $11441.88
    Total annual costs = $2220.11
    Total annual cashflow = $-4842.79
    Total funded costs = $40740.00
    Annual Cash On Cash Return = -11.89 Percent
    Cashflow Positive Weekly = $-93.13

    Thanks for your help

    Regrow

    You are a fool for 5 seconds if you ask a question, but a fool for life if you don’t.

    Profile photo of DerekDerek
    Member
    @derek
    Join Date: 2004
    Post Count: 3,544
    August 30, 2004 - 10:44 am

    HI Regrow,

    Just a quick note – capital depreciation is claimed as a percentage of the building cost of the property and as such I would argue that if you are buying this property at $195K then you will not get a depreciation claim of 2.5% X $195K as there is no allowance for land content nor any for plant and equipment.

    As a rule of thumb you can allow approximately between 15% and 40% depending upon the nature of the building for plant and equipment.

    Derek
    [email protected]

    Property Investment Support Available. Ongoing and never stopping. PM welcome.

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.