Calculating How Much Equity You Have Available

[Howdy Doody]

Hi all,

I'm not sure whether this is going to be of value but I thought I'd put it out there. I've developed an equity calculator that determines how much available equity you can use for investing in property or stocks. It's only a new development so I'd appreciate any feedback. You can find it here http://www.themoneyorb.com/EquityCalculator.aspx

Cheers
Ben

p.s. If people have any other types of tools they believe may be of value I'm interested in hearing any ideas. Just PM me.

 

[agent007]

Hi all,

I'm not sure whether this is going to be of value but I thought I'd put it out there. I've developed an equity calculator that determines how much available equity you can use for investing in property or stocks. It's only a new development so I'd appreciate any feedback. You can find it here http://www.themoneyorb.com/EquityCalculator.aspx

Cheers
Ben

p.s. If people have any other types of tools they believe may be of value I'm interested in hearing any ideas. Just PM me.

Hi Howdy Doody,

Please, take bellow comments as positive feedback.

I like the calculator idea however, in its present form it's not of any practical use for "me" . The reason is that it's not flexible enough to adapt to what I could call "investor" requirements. To me it looks like the calculator was designed for someone that is about to start investing or had just recently started (multiple loans, structures, ownership, accounts, etc are not taken in account).

What follows is a personal reflextion/frustration with the environment in which we investors operate and has not direct relationship with your calculator. I apologise for writing it here.

The main issue I see with all the existing products & services related to direct residentail property investment (loans, calculators, mortgage brokers, accountants, solicitors, etc), is that they were fundamentally design to cater for PPOR buyers (the majority of the population). What investors (the small minority), have done is to patch and/or adapt them to cover theirs needs however, they were not originally designed for that purpose. This creates a lot of issues which somehow we've being solving or trying to as time goes by. Nonetheless, some of the solutions if not the majority don't offer the full benefits that in my opinion they should. One site doesn't fit all however, we're forcing it to fit.

Who are the best mortgages brokers?, the best property solicitors/accountants?, etc- The ones that think outside the box and own and/or deal with investment properties. I think that the financial institution that creates a product specifically designed to cover the requirements of direct residential property investors (let's call them professional or serious property investors), will make a lot of money very quickly. I believe this is a nich market in Australia that hasn't been properly exploited yet.

Cheers,
James.

 

[MichaelW]

Didn't work...

It calculated that I had -$1M in borrowing power based on my current loans and assets given an 85% LVR target. In reality, there's a touch available but it got the total equity number way wrong. That number really should be total assets, not total equity. Then the next number should be total liabilities which in reality is the same as committed equity so that's cool. Then calculate available equity as 85% of total assets to get available equity, then deduct committed equity from available equity to get borrowing power.

For whatever reason, it had my total equity as way wrong.

I've taken a screen dump if you want it for a debug send me an email so I can reply and attach.

Cheers,
Michael.

 

[Able]

It didn't work for me either. The 'additional property' section does not seem to work. It was throughing up errors such as "invalid property value". Borrowing capacity was negative.

Regards
Able

 

[Rixter]

Dave,

Who needs DSR with that much equity available!

 

[BoatBoy]

Dave,

Who needs DSR with that much equity available!

I quickly deleted as it may offend the more sensitive here, but that was what it reckoned I could borrow, equity was a fair bit lower than that figure.

And yes,there are ways around the serviceability issues, but one step at a time at the moment.

Dave

 

[Howdy Doody]

Hi again,
Thanks for the feedback. There'll be a new release shortly so the site may be down.

 

[Howdy Doody]

Just a quick note to say the issues have now been resolved. Thanks to Michael Whyte for helping me out.
Ben