Calculating depreciation as part of yield

Hi @Tim & Chrissy. You mentioned you were looking around Kallangur so any reason you seem to be going for a higher priced property? There are still plenty of 3 bedders around the area between $300-400k aren't there? To go with Liberty I assume you'll have a high interest rate. But if you went with a cheaper property you might have more lender options?

 

Depreciation is going to be tied to age, size of build, materials in the build and state and quality of fitout and appliances etc

Call one of the companies that does schedules, maybe some calcs online too.

 

This should be enough info.

If you can find something 10-15 years old, it is going to blow anything post war era that is not completely renovated out of the water.

Just remember you give some of it back when selling.

 

This is something that can be easily overseen, especially when calculating how much you'll get from a sale, but many would agree is a cost of owning IPs

 

We ended up purchasing a dual occ in March 2016, ended up with a good yield and decent depreciation as well. Interest rate wasn't too bad, it's still under 5% now.

Would love to purchase again but the only way forward for us is a cheap buy and flip under $300k and I'm not keen on doing that interstate. From what I've seen I also need to be in a much higher price bracket to to make a buy and flip worth the risk.

 

Its tough i only have one boy to support now (the other three all work) ...the two mums like to only do only volunteer work ...but i would not swap the children for anything.....
The nicest feeling is when one wants to carry on the properties (my 18yr son) business
Keep at you are doing a great job

 

Thanks @Beano we are really hoping to give the kids a headstart with the properties, would love to buy a local 4 unit complex down the track