Property Investment Analyser
The property investment analyser has been designed to make it quick and easy to estimate the weekly cashflow cost/income and long term capital growth benefits of buying your next investment property. Just enter the following information in the analyser below to work out your cashflow and capital growth forecast. There are more tips below the calculator to help you get started.
Purchase price: How much are you paying for the property?
Amount to borrow: After deducting your cash deposit, how much will you borrow? If you are using equity from another property as security, enter the purchase price as the full amount to borrow.
Rent per week: Whats the average market rent you expect?
Rates & body corp p.a: Enter annual estimate for any council rates and/or body corp or owners fees.
Repairs and insurance p.a: Enter an annual repairs allowance and insurance cost.
Weeks occupied p.a: On long term rentals, 48-50 weeks is standard, on short term look at local occupancy data.
Property management: If you are using a manager, select a % cost; 6-8% is standard. If managing yourself select ‘none’.
Average annual capital growth: This will vary, but 5% - 8% per year is the long term average for most metro areas with positive population growth. Regional areas will vary. This helps you work out how much your equity (wealth) will increase over the next 10 years from owning this property.
Mortgage interest rate: This is an interest only calculator to help you check minimum affordability. Enter the interest rate you can borrow at to buy this property.
Year 1 weekly Pre-tax cashflow: This is the average weekly cost (if negative) or income (if positive) impact on your portfolio for owning this property. If your interest rates stay the same (or are fixed) and rents increase each year, you would expect cashflow to improve from year 2 onwards.
Property value after 10 years: Forecast property value based on capital growth rate you selected above.
Equity gained after 10 years: The difference between the property value in 10 years and what you paid for the property at purchase.
% return on deposit: This measures the return on initial deposit (and excludes annual cashflow) against the end value of the property after 10 years. If I use $100,000 as the deposit and gain additional equity of $500,000 over 10 years, the % return on my deposit is 500%.
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