HoBo:Rent$13,520pa / 52 = $260pwBuy$330,000 + $13,000 (stamp...

HoBo:

Rent
$13,520pa / 52 = $260pw

Buy
$330,000 + $13,000 (stamp duty) x 6.75% = $23,152 (IO)
1% maintenance/strata/council/levies/sinking fund/water = $3,300
Total = $26,452 / 52 = $509pw

Rent difference

509 - 260 = 249pw

Negative gearing

40% of 249 = 99.6(100 to round it of)

Total loss(as you will say) = 509 - 260 - 100 = 149.

so the total loss is 149 not 249pw which is 3% of the capital risk, which IMHO is a risk worth taking.

cheers,