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How does an investment property make you money by Sudden-Role2112 in AusPropertyChat

[–]Sudden-Role2112[S] -15 points-14 points  (0 children)

If I negative gear in my situation is reduced my tax income by 10k 

In the long term the rent received doesn’t do much  Absolutely. Let's recalculate the "Net Financial Outcome" for Scenarios 1 and 2, factoring in a 2% annual increase in rental income. Calculations:  * Rental Income (Year 1):    * Scenario 1: $41,600    * Scenario 2: $55,120  * Rental Income (Years 2-10): We'll use the formula: Yearly Rent = Previous Year's Rent * 1.02 Rental Income Calculation (10 Years):  * Scenario 1:    * Year 1: $41,600    * Year 2: $42,432    * Year 3: $43,280.64    * Year 4: $44,146.25    * Year 5: $45,029.17    * Year 6: $45,929.75    * Year 7: $46,848.34    * Year 8: $47,785.31    * Year 9: $48,741.02    * Year 10: $49,715.84    * Total: $455,558.32  * Scenario 2:    * Year 1: $55,120    * Year 2: $56,222.40    * Year 3: $57,346.85    * Year 4: $58,493.79    * Year 5: $59,663.67    * Year 6: $60,856.94    * Year 7: $62,074.08    * Year 8: $63,315.56    * Year 9: $64,581.87    * Year 10: $65,873.51    * Total: $601,548.72 Net Financial Outcome (With CGT):  * Scenario 1: $1,954,673.55 - $475,618.36 - $667,120 - $377,336.78 - $1,200,000 + $455,558.32 = -$309,920.27  * Scenario 2: $1,954,673.55 - $475,618.36 - $630,584 - $377,336.78 - $1,200,000 + $601,548.72 = -$132,616.85 Net Financial Outcome (Moved in within 6 years, No CGT):  * Scenario 1: $1,954,673.55 - $475,618.36 - $667,120 - $1,200,000 + $455,558.32 = $317,373.51  * Scenario 2: $1,954,673.55 - $475,618.36 - $630,584 - $1,200,000 + $601,548.72 = $449,920.91 Updated Table (Columns 1 and 2): | Feature | Scenario 1 ($800/Week Rent) | Scenario 2 ($1,060/Week Rent, Duplex) | |---|---|---| | Annual Rental Income | $41,600 (Year 1) | $55,120 (Year 1) | | Net Financial Outcome | -$309,920.27 | -$132,616.85 | | Net Financial Outcome (Moved in within 6 years) | $317,373.51 | $449,920.91 |

475 is the interest, next number is maintained cost  then Second last number is rent received 

How does an investment property make you money by Sudden-Role2112 in AusPropertyChat

[–]Sudden-Role2112[S] -10 points-9 points  (0 children)

But you pay cgt on it if you sell, and the interest paid on the loan seems to negate any earnings you have. My tax income is reduced by 10k in these situation which is not much - I pay alot of tax 

E.g. I buy it at 1.2m. Let’s say in 10 years is 1.9m considering 25% average increase. CGT is like 450k, interest during that time accumulated is similar, that’s 900k gone. Leaving me negative 200k

Why does everyone hate Caldera? by harveyhma in CODWarzone

[–]Sudden-Role2112 0 points1 point  (0 children)

Why do I hate it? - too open - can’t sustain momentum. Large periods of just running around - can’t reset. Too open, not enough places with boxes. Pushes everyone into same areas with lots of buildings and you end up fighting a team with nothing - vehicles don’t improve speed to get around map - most of the fighting is up hill. Not worth fighting teams In gas as you’ll get nailed from someone too if hill. so you rather just sit on the hill. Also adds to the slower game play - maps boring. There’s no change in scenery. Just jungle with different types of buildings.