Peter has been keen to break into and invest in the property market, with relief that he now does not need to have $60k (10% deposit) in savings before he can start to invest.Peter knows on his single income it would be really hard (impossible to get a mortgage) to buy and live in a property just on his income.
It makes sense to buy investment property rent it out and to continue to rent himself with 3 mates where he shares the rent costs and lives in a location he really likes.The house and land package that Peter purchased now gives him $156 a week in positive cash flow after paying for the mortgage and all property costs.
Plus with a tax refund of $4,620 Peters personal rent cost of $13,000 pa is now almost paid by his investment property income $12,732, which is amazingly almost the $15,000 Peter contributed.
months to become a property investor
Tax refund in the year
tax refund in the year
annual property income (share of co-investment)