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Loans-Income

Discussion in 'General Investing Discussion' started by Redwing, 14th Apr, 2008.

  1. Redwing

    Redwing Well-Known Member

    Joined:
    9th Jun, 2006
    Posts:
    476
    Location:
    PERTH..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
     

    Attached Files:

  2. DaveA

    DaveA Well-Known Member

    Joined:
    19th Feb, 2007
    Posts:
    617
    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....