No, since your earning always lower than your spending.
for a brand new apartment here in sydeny you will also have 2.5% depreciation of your property value. that also count as your cost. for example:
Say your property worth $500,000
you rent your property for $600 pw, so every month your rental income is $2600.
you paying monthly Mortgage at $4000 per month so every month you only pay $1400 for your mortgage. and $1400 can be claimed as Tax return.
as I said, you also have 2.5% depreciation of your property value, you can also claim that as Tax return. so $500,000 x 2.5% = $12,500.
so the total figure for Tax return will be $1400 x 12 + $12,500 = $29,300.
if you earn $90,000 a year, that mean your Tax return will be $10,755.
distrubute $10,755 to every month's mortgage payment, for every month you only need to pay $503.75.
so to maintain a $500,000 property monthly cost to you is about $500.
and remember, mortgage is being paid less and less, and rental income is getting more and more, so by one day (roughly around 5 -7 years, thats why property value here in Australia doubled every 7 years) your rental income will be more than your mortgage, (that's is the time you start to paying Capital Gain TAX).
I say 5-7 years is just an average, here in Sydney in some suburbs is about 3 - 5 years.
As Kevin Rodd's new immigration policy, I think that 3-5 years will be shorter. |