HELP NEEDED WITH INVESTMENT PROPERTY

It is always good to work out the cash flow figures as well
income = rent – prop manage fee – 9% interest on loan – council rates – water rates – insurance – $1000 for maintenance
If you have a negative income figure then you can decide if you can afford the cash flow loss
If it is a positive figure then you have less trouble affording it.

What you need to decide is what is your goal
To own a positive cash flow property (is there a chance of capital growth)
To pay down the loan as quick as possible

or
To own a negative cash flow property (possibly get capital growth)

You may find $3000 to $4000 per year may be what it costs for the extra costs above the interest charge

I stated 9% interest rate as interest rates are on the rise (worse scenario)
if you use an amortisation template in excel you can work out the repayments if p & I
as you may wish to use repayment amount instead of interest charged.

I would factor $1000 minimum for repairs as if something breaks like plumbing or hot water service it has to be fixed straight away.
Council Rates approx $700 a year check with real estate agent they may have a copy of the Council rates.
Water Rates approx $700 a year but depends on water company as my parents pay 1200 due to wilsons prom charge, check with real estate agent they may have a copy of the water rates.
Insurance – get a quote as you will need insurance anyway probably $600 to 800 a year
9% loan repayment p& I over 20 years is approx $210 a week  $36 a week principal and $173 as interest payment
It is a good idea to have cash in an account in case tenants do not pay rent or pay late of about 3 months or more that is $2400 so you do not default on the loan payments if relying on the rent to cover this loan repayment transfer payment.
If the house gets trashed or abandoned it could take 3 months to fix the house to a rent able state.
Not sure on property management fees you need to make inquiries with propective real estate property managers

You also need to factor in Stamp Duty on your purchase do a google on stamp duty calculator
if Loan to Value ration is >80% you have to pay mortgage insurance at time of loan settlement – google mortgage insurance calculator
Also you will be hit with loan establishment fees by the lender bank

palmer, the property you mentioned sounds like a good buy if you plan to buy and hold. Also are you planning to pay principal and interest or interest only? Water rates usage are generally paid for by the tenant only sewerage and supply by owner. Check with the real esate agent what these fees and charges are. i own a number of regional properties and the rates and water rates charges that duckster quoted are much higher than what i pay for my properties. Insurance is also much less on a property of that value in a regional area. You can calculate stamp duty, loan repayments, etc on real estate.com click on 'calculators' on the left hand side of the screen.

cheers

Sonya