Hi Folks
A mate of mine asked me the other day what I thought of a property he was thinking of buying. I remembered I had a SS that I used to look at a glance to see how it would perform over time in regard to "How much real money would be needed and for how long."
One of my favourite motos is "How long before I get my money back?"
The spread sheet enables the veiwer to see how long they would have to hold the property and at what capital growth rate expectancy before they could refinance and then take their money back.
I don't neg gear with my portfolio as it is my only source of income. So for those who do, they might find a greater flexability when servicing the finance and thus allow themselves more room for holding costs.
The model I used in "calculator a "is a property priced at $330K with an 80% loan and a 7.5% interest on the loan and a 25% holding costs(does not include the loan) with a rent of $330pw.
Calculater b is the same but at a 90% lvr to show contrast in financial outlayand on going costs.
Below these calculators is ten year flow chart showing when the property could be refinance to take back the initial investment and other holding costs up to that point(whereever that falls) in this case at an 80% LVR the property could be refinance at then end of year 4 given a 10% p/a capital growth rate. Refinancing then would return all of the invested funds leaving only the shortfall caused by refinancing which inturn would adjust the annual return on those remaining invested $$ to a very pleasing %.
Have fun and am happy to answer any questions regarding the SS
Simon
The spread sheet is interactive all you need change is the info in the yellow boxes.
A mate of mine asked me the other day what I thought of a property he was thinking of buying. I remembered I had a SS that I used to look at a glance to see how it would perform over time in regard to "How much real money would be needed and for how long."
One of my favourite motos is "How long before I get my money back?"
The spread sheet enables the veiwer to see how long they would have to hold the property and at what capital growth rate expectancy before they could refinance and then take their money back.
I don't neg gear with my portfolio as it is my only source of income. So for those who do, they might find a greater flexability when servicing the finance and thus allow themselves more room for holding costs.
The model I used in "calculator a "is a property priced at $330K with an 80% loan and a 7.5% interest on the loan and a 25% holding costs(does not include the loan) with a rent of $330pw.
Calculater b is the same but at a 90% lvr to show contrast in financial outlayand on going costs.
Below these calculators is ten year flow chart showing when the property could be refinance to take back the initial investment and other holding costs up to that point(whereever that falls) in this case at an 80% LVR the property could be refinance at then end of year 4 given a 10% p/a capital growth rate. Refinancing then would return all of the invested funds leaving only the shortfall caused by refinancing which inturn would adjust the annual return on those remaining invested $$ to a very pleasing %.
Have fun and am happy to answer any questions regarding the SS
Simon
The spread sheet is interactive all you need change is the info in the yellow boxes.
