I just copy and pasted to highlight the following ... "Before you buy an investment property you?ve got to work out your numbers beforehand. So let?s just say you bought a typical $500,000 investment. That should rent out at about $450 a week. And that equates to about **$22,500.
** this is a gross figure and doesn't even take into account ongoing expenses and maintenance. Let's be generous and readjust this to a net figure of $15,000 p.a.
?Now let?s just assume you borrowed 100% of the funds at say 7% interest, that equates to $35,000 in mortgage repayments. Now strata fees and other expenses are going to be about 1% of the property value, so that?s going to be about $5,000 a year.
?So if you add all those numbers up, a property of about $500,000 will cost you **$22,500-$27,500 (readjusted) in cash flow. OUCH !!! *****
