![]() But now we need to calculate more of the expenses to make sure that even if your rental income is greater than your loan amount and interest repayments you will still have a positive cash flow. Now if your mortgage is more expensive than the rent then that’s automatically going to be a negatively geared property. We’ve worked out our major income (which is our rent) and our major expense (which is our mortgage). The simplest thing to do is to find one of the loan calculators online (and you can go to /calculators for a list of those) and punch in your figures and it will tell you how much you need to pay either monthly or yearly towards your loan. If you’re doing principal and interest (which means you’re paying your interest but also paying money on top of it in order to pay down your loan in 20 to 30 years) then this calculation is much more difficult to do. You can then divide by 52 and that will give you how much you will pay per week if you prefer to work it out in weekly increments. For instance you might multiply by 5% or 0.05 and the result will be your annual figure for how much money you will need to pay interest on that loan for the year. Take your full loan amount from the previous step and multiply it by the interest rate. If you’re going with an interest only loan this is a pretty simple calculation to do. It is important to calculate all of your expenses first and then subtract the amount of money you have in order to get your total loan amount. ![]() Once you add up these things then you subtract it from the amount of money that you have available.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |