- All money is in NZD, all calculations done Weekly. Linked house is just example.
- House in North Shore, Auckland, New Zealand. $600K
- 30 year Mortgage with ASB, 430K loaned at 5.75% variable, (170K down)
Loan repayment figures:
Repayment required: $750 Proportion in interest: $475 : ($430,000 x (0.0575/52)) Proportion in principal: $275 : (total-interest)
Incoming rent figures: (estimate)
Gross rent: $600 (Caters a bit of down-time) net rent after tax: $450
$130 implicit revenue, from $475 interest, tax deductible.
Final calculations to show benefit in my favour (of making this decision)
$750 total, to be paid. +$50 (estimate of home-owner related costs) -$450 net rent -$130 implicit revenue from interest tax deduct 475 (27% of 475) -$200 rent I would have paid, if was renting somewhere else -$275 proportion of payment that is principal (my money anyway) =-$255. (I.E $255 per week to be benefited from buying this house)