A Report On The Investment Property

1065 WordsSep 10, 20155 Pages
Property Description The investment property I have decided to purchase is located in West Launceston at 1/11a Duke St the property is a 2 bedroom single bathroom unit, the bedrooms are fairly large compared to a regular bedroom. The property is valued at $299,000 on Realestate.com.au. The property shows great appeal as it has large rooms and a nice outdoor area. This property is also appealing to someone who wants to rent it because it is fairly close to town roughly 1km south of the town it’s definitely a possibility for a walk into town. The house also has multiple supermarkets nearby. Loan Payments If I bought this $299,000 property at a discount of 5% for a price of $284,050 and I paid 10% of that number for deposit then I would need $255,045 to loan. Over 20 years on monthly payments with the standard variable rate investment home plan I would need to pay $1791 per month or $896 per fortnight. Other Payments Other payments I would have to make is the stamp duty this will cost me $129.10 for the mortgage registration, transfer fee of $197.81 and a stamp duty of $9,299 this brings the total government fees to $9,621.91. Another cost would be legal fees for the first $150,000 of price the rate is 1%, which equates to 1,500, the next $400,000 worth is at a rate of 0.7% so 134,050 times 0.007 equals $938.50. The legal fees for this property are $2438.50. Negative and Positive Gearing Gearing is the amount of debt that a company has and is listed as a ratio compared to
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