Loans-Income

Discussion in 'Share Investing Strategies, Theories & Education' started by Redwing, 14th Apr, 2008.

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  1. Redwing

    Redwing Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    7,426
    Location:
    WA
    Just had a play with these figures

    Tax, Depreciation, Rates etc not taken into account

    Interesting to play with increasing the rents, decreasing and/or increasing the Fund/shares returns to see outcomes
     

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  2. DaveA__

    DaveA__ Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    580
    Location:
    Sydney, NSW
    at a 9% interest rate, those interest costs would mean a portfolio of 1.43 million

    this equates to a 1.1% short fall each year.... 15k shortfall seems great to get a 1.43m portfolio, id imagine that would be fairly hard to recreate that at the moment as yields are struggling to get to 5% (before outgoings), and interest rates are ~9%...

    its a bit to simple to mean much though.... in affordability you really have to look at your outgoings, allow a vacancy factor, and take into account deprecation benefits...

    does so how much negative gearing property really limits you in wages though....