How much is your annual rental income as compared to purchase price? Let's say 4% (price to rent ratio of 25).
and the depreciation of a strucutre (let's say 1/2 of the purchase price) is still nearly 2% of property value.
So HALF of your rental income are washed out by depreciation.
Next, your mortgage interest, property tax (usually more than 1% of property value) and other expenses would take a good chunk away from rental income.
Usually you comes out negative with mortgage and depreciation.
Rent: 20,000 a year (assuming price to rent ratio of 20)
Property tax: 1% $4000 a year Insurance $1000 a year. Mortgage: $300,000 loan at 3.5% for 30 years, interest is roughly $10,000 a year for the first few years.
除了应急钱,还有二十万现金,如果买房当首付,万一正的现金流了,还是要交税。
大家每年报税季都怎么搞?
阿弥陀佛 善哉善哉
得在股市赔点钱。哈哈
After depreciation everything is negative.
How much is your annual rental income as compared to purchase price? Let's say 4% (price to rent ratio of 25).
and the depreciation of a strucutre (let's say 1/2 of the purchase price) is still nearly 2% of property value.
So HALF of your rental income are washed out by depreciation.
Next, your mortgage interest, property tax (usually more than 1% of property value) and other expenses would take a good chunk away from rental income.
Usually you comes out negative with mortgage and depreciation.
Property value: 400,000, land: 125,000 structure 275,000 => Depreciation: $10,000 a year.
Rent: 20,000 a year (assuming price to rent ratio of 20)
Property tax: 1% $4000 a year
Insurance $1000 a year.
Mortgage: $300,000 loan at 3.5% for 30 years, interest is roughly $10,000 a year for the first few years.
So annual taxable income =
Rent - (tax + insurance + mortgage interest) - depreciation
taxable income =
20000 - (4000+1000+10000) - 10000 = -5000