# Newbie needs help!

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#### WebBoard

##### Guest
From: Marc Krisjanous

Hi all,
I have just purchased PIA and have attempted to enter in my first IP's data. Here are the values:

Purchase Price
Property Value = \$270,000

Purchase costs
Deposit = 15,000.00
Stamp Duty = 10,960
Conveyancing costs = 250

We brought OTP and placed a deposit on the IP that was valued at that stage for 255,000.00. Then when settlement came we had the IP revalued and got 270,000.
We then applied for the loan - which was about 91% of value.

Outlays
Loan 243,000 - includes title reg, stamp duty both on IP and mortgage

When I entered this data into the appropriate sections (as above) the following values are displayed:

Outlays Section

Property Cost Outlays = \$44,767 - Loan 225,233 (I entered in the loan value as recorded from the loan documents)

Renovation costs = nill - Loan nill

Purchase Costs Outlays = 15250 (this is the convey. and deposit) Loan - 10960 (which is the stamp duty that the loan covered).

Furntiture package nill - nill

Loan costs - 6807.

The Loan total is correct - 243,000 - this is what we borrowed.

But the outlays total seems wrong - 60,017. This is 44767.00 (which is 270,000.00 - the IP value) + 15250 (15 deposit and convey. costs.

243,000 + 60,017 = 303,017.00 - I am very sure we have not forked out this much!!

What am I doing wrong? Plus - is there a larger guide that I can read for PIA?

Best Regards

Marc

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#### WebBoard

##### Guest
From: Webmaster (Somersoft)

Hi Marc,

Your situation is a little different to what PIA expects, but it is easy enough to accommodate.

Firstly, you need to tell PIA that the property price and property value are different. This easy enough, just click into the Property Value dialog and set the price (\$255k) and market value (\$270k). The price is used to calculate the loan amount, the market value will determine your equity in the property.

Secondly you need to specify that the stamp duty is not based on the price of \$255k, but on the land content only. If you already know what the stamp duty is, click on the Purchase costs dialog and overwrite the stamp duty with \$10,960 and the conveyancing with \$250.

However, for your loan amount to be correct, you will need to specify what you loan costs will be. Click on the Loan Costs dialog and set them accordingly (\$6,807?).

Now when you open the Loan Amount dialog, you will have the option of specifying how much cash you will be outlaying towards each of the above costs, the remainder of course will be the amount you borrow. Alternatively you can specify the loan amount (\$243k) and the cash outlays will be set accordingly.

Voila!

Is there more help? Yes! In each of the dialogs you will find a "?" button with useful information about the dialog. Under the Help menu, you will find a range of help topics that cover the use of the software including some additional worked examples. As well as this there is a PIA User Guide in the form of an Acrobat file which is accessible from the Start Menu.

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#### WebBoard

##### Guest
From: Marc Krisjanous

Hi,
Thanks for the help so far. I have entered in the market value of the IP being 270,000 but I still don’t understand where the figures come from in the Loan Amount dialog.

Heres what we did:

1) We got a loan for 243,000.00 which included the property price 225,233.00 + stamp duty 10960.00 and the mortgage stamp duty. Plus the associated costs of title and loan management. This comes to 243,000.
2) We payed 15k deposit and 250 for convey. costs.

I entered in the stamp duty in the purchase costs dialog I loaded the Loan amount dialog, removed the stamp duty value from the outlays section to the loan section (purchase costs). I then added the loan costs and it all calculated to 243,000.
But in the outlays section for the property costs it comes up with 29,767. This seems wrong – the only outlay we did was the deposit and the convey. costs. What am I doing wrong? Because if you add up the outlays total (45,017) with the loan total ( 243,000) you get 288,017 which is not correct!

I have attached my file so you can see whats going on.

Best Regards

Marc

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