What is an off market sale, you may ask and why are they becoming more common in Melbourne during the coronavirus covid-19 crisis? Plus how to participate safely.
Minimum monthly dollars to invest in quality residential Melbourne property
Jarrod McCabe and Howitt Partners' Charles Howitt consider how much spare monthly cash flow is required to finance an entry level ($400,000) investment-grade property, based on the following assumptions:
- Investor borrows $400,000
- 100% LVR, secured with home
- Transaction costs paid up front with cash
- Mortgage interest rate of 5%, interest only
- Gross rental income of 3.5%
- 25% of gross rent allocated to management/maintenance costs.
They consider the result for a top-rate and second-tier marginal tax rate payer. You may be surprised at the numbers!
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