I paid a little under 20K in rent last financial year. House went up for sale at $490 - $520. We moved to a much nicer 4 bedroom house for $20 a week more and with the help of a few mates had it all done in 1 weekend. The house I was living in just sold for $430k, a $70k loss in 12 months. Lets do the maths -
Income from IP $20k Loss in value $70K Interest on 500k @ 6% - $30K Rates, maintenance, agents fees - lets call it $8k Living/opportunity cost for their own PPR at 6% - $30k Loss in value $50k Rates and maintenance $5K
My total cost to live in a 3 bedroom house last financial year - $18'000 Total cost of living in a PPR and having a rental property - $193'000 less $18'000 in rent for a total of $175'000.
The look I give people when they tell me rent money is dead money - Priceless!
