Previous Issues

Welcome to The Bill

With the Melbourne Cup only a day way, the safest bet you're likely to have is that interest rates will rise for the second time this year.

So I thought it timely to bring you a special edition of The Bill in which we analyse how the impact of rate rises will affect the cashflow of your investment property. Or more simply, to identify the turning point when a property starts costing you money to own as opposed to paying you.

As you will see from our analysis, the odds of staying cash-flow positive are increased if tax depreciation allowances are maximised.

I trust you will find the following information valuable. Good luck in the big race, I hope you pick a winner!

Regards,

Tyron Hyde
Director, AAIQS

Man with calculator

How will rising interest rates affect my cashflow?

With most economists tipping the Reserve Bank of Australia (RBA) to increase the cash rate on November 3, we have been crunching the numbers here at Washington Brown to you get a clearer understanding of the interest rate turning point when a property becomes cash flow neutral.

You can get a FREE customised cash flow analysis on your property – learn more

2 hourses racing

Interest Rates Case Study $75,000 Salary

How does a rise in interest rate affect cash flow for a property investor on $75,000 a year? We’ve run the numbers on properties worth $300K and $500k and come up with some interesting figures.

What’s better? The house or the high rise apartment? The old or the new property?

See the results.

Horse Racing Betting stub

Interest Rates Case Study $150,000 Salary

Negative gearing works better for taxpayers on a higher salary. How is an investment property owner on $150,000 affected by interest rate changes? We looked at house and high-rise apartments, old and new.

See the results.