Living on equity

JamesGG

JamesGG

Hi all,

Just thought I'd give something back to the forum I've gotten so much out of over the last few years.

I've been working on a spreadsheet that shows the effects of living on the equity of a property portfolio, where the user can simply plug in some numbers and the system does the rest. It is a very basic tool, but can perhaps be effective in explaining the idea to someone who is not familiar with the concept.

I've attached it here for everyone to download and play with, if you like, before it is available to our clients.

Any feedback is, of course, greatly appreciated, but that's not the primary excercise here. Just one way I'd like to say thanks :)

Regards,

James.

PS - file has now been updated to match the one below and the blue cells should now be fully operational for everyone...
 

Attachments

  • Living On Equity.xls
    41.5 KB · Views: 310
Last edited:
Hi Tony,

The majority of the cells are locked, to ensure that the formulae are not accidently altered or deleted.

The blue squares, for data entry, should be unlocked though. I just downloaded the file from here to check, and it seems to work ok for me???
Can someone else verify this at all please?

Regards,

James.
 
JamesGG said:
Hi Tony,

The majority of the cells are locked, to ensure that the formulae are not accidently altered or deleted.

The blue squares, for data entry, should be unlocked though. I just downloaded the file from here to check, and it seems to work ok for me???
Can someone else verify this at all please?

Regards,

James.
Click to expand...
Yep! Mine works fine.
 
Hiya,

Well, I have no idea why it works ok for some and not for others, but I have unlocked that sheet now so *fingers crossed* it works alright this time :)

Have fun :D

James.
 

Attachments

  • Living On Equity.xls
    41.5 KB · Views: 236
Hey - this looks great JamesGG!
I downloaded it to try, and I am having the same prob with the blue cells being locked.


-------
The new ones works fine - thanks very much!!
-------
 
Yep, works well for me also.

I assume the graph at the end is the most important output - if the lines cross you are in trouble, if they get further appart then things are going well.

If this spread sheet is correct one of my current 12 month plans means no more work for me! although one of my properties is in Karratha and can be considered higher risk.

Just a quick one on the Return On Assets - this is the total rent you receive for the properties over a year, correct? Does the SS take into account holding costs?

Great work, love it, going to be playing with the figures all the time.
 
Hi Cheeks,

To be honest, it's a simple spreadsheet because I like simple ideas. I guess if you wanted to take holding costs on the properties into account as well, then you could either subtract this from your annual rent, or, add it to your lifestyle costs.

I could easily add them into the equation, but, where do I stop? Like I said, I wanted to keep it fairly simple to give a guide on how the concept works.

On a separate note, congrats on being in a position to perhaps take action and retire within the year - well done! :D

Regards,

James.


Cheeks said:
Yep, works well for me also.

I assume the graph at the end is the most important output - if the lines cross you are in trouble, if they get further appart then things are going well.

If this spread sheet is correct one of my current 12 month plans means no more work for me! although one of my properties is in Karratha and can be considered higher risk.

Just a quick one on the Return On Assets - this is the total rent you receive for the properties over a year, correct? Does the SS take into account holding costs?

Great work, love it, going to be playing with the figures all the time.
Click to expand...
 
Thanks for that James.

It is a simple tool that made me realise visually that the key to living of equity is to have Assets grow quicker than Liabilities.

The actual implementation of this seems a bit more tricky, because of serviceability, but this spreadsheet is great way visualise what is going on.

Cheers,
 
This is fantastic James. My husband spent hours working this stuff out longhand the other night and I did it in 10 seconds with your spreadsheet.

This might be a cheeky ask, but would it be difficult to include in your spreadsheet a change in circumstances. eg in 7 years I will receive a commonwealth pension and it would be good if we could factor in that change at year 7.

But what can i say this spreadsheet is just what the Dr ordered!!

Thanks again
 
Hey Brilliant....!!!!!!

Cheers James, very handy little tool...fun, fun, fun (although somewhat depressing at the same time). Is your pink line supposed to off the computer screen? :rolleyes:

ArJay:)
 
James

Thanks very much for that - a picture says a thousand words and this simple visual explains what I try and say over and over (and over, again!).

I am very pleased to say that 'my' lines look like curled celery, or should that be Brilo trains, forever repelling each other?

Great stuff!

Kristine
 
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