new to the game, page-6

I will give you my view of your proposal.

Property with $400,000 mortgage.

Renting out for $400 per week.

Interest payable (interest only loan) =$29,000

Other expenses (Rates,Insurance,Water,Mang.Fee's) = $5,000

Total outgoings = $34,000


Rent @ $400/wk = $20,000

Tax saving on $34,000 outgoings and $10,000 deprecation
at a marginal rate of say 40% = $17,600

The truth is it will cost you very little to own an asset that will appreciate at say 8%pa. Your investment will be worth about $610,000 after 5 years for an investment of say $50,000 plus buying costs. Now there may be shares that will give you a similar return but I don't feel qualified to suggest which.

These are rough figures but are more realistic than Aurelius or Penny.

The only advice I would give you is to do your homework and don't listen to people who do not know what they are talking about.