Hi all,
Yes Duncan it is a pretty spreadsheet.
But you make many assumptions.
You assume that rental return is 5% and only goes down to 4.6% over the time of your plan.
You assume there are no costs for PM, or vacancies, or maintenance and repairs.
You assume that there nice regular cap gain increases.
You assume a persons mental state as to regarding how well the system works, will be logical throughout time. For example if there is no growth for the first 8 years yields have only gone from 5% up to 6.6%. As interest rates are now 11.5% and been rising, how confident in your scenario would a normal rational person be??
At this point with LVR at 76% and interest at $66,000 above gross rental return, your partner may be thinking you were doing something wrong!, especially considering the portfolio was cashflow positive when you started, and your LVR was only 61%.
bye
P.S. Where is the year/years of neg growth in the spreadsheet? or is the possibility of negative growth not on your radar.
Yes Duncan it is a pretty spreadsheet.
But you make many assumptions.
You assume that rental return is 5% and only goes down to 4.6% over the time of your plan.
You assume there are no costs for PM, or vacancies, or maintenance and repairs.
You assume that there nice regular cap gain increases.
You assume a persons mental state as to regarding how well the system works, will be logical throughout time. For example if there is no growth for the first 8 years yields have only gone from 5% up to 6.6%. As interest rates are now 11.5% and been rising, how confident in your scenario would a normal rational person be??
At this point with LVR at 76% and interest at $66,000 above gross rental return, your partner may be thinking you were doing something wrong!, especially considering the portfolio was cashflow positive when you started, and your LVR was only 61%.
bye
P.S. Where is the year/years of neg growth in the spreadsheet? or is the possibility of negative growth not on your radar.