PIA Features

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From: Roger Sager



I interested in figuring out how I would put in costs associated with an 'off-the-plan' property purchase. The difficulty is I purchased a unit in Melbourne and took out a Deposit Bond for $2600 that guarantees that I will put the 10% down and settle the purchase in 2 years time. So the only cost I have in this current year (2000-01) is the Deposit bond costs. All the other normal costs for the property won't occur until Dec 2002.

Therefore, my question for you is how do you put that into PIA?

Cheers Roger Sager

 

[WebBoard]

Reply: 1
From: Webmaster (Somersoft)


Please keep in mind that the PIA is designed as a "decision-tool". It's aim is to help you evaluate various investment properties and strategies through a cash flow analysis and the calculation of the internal rate of return. It is possible to simulate an advance-purchase off-the-plan, but it is not optimised for it (in this sense the building becomes a capital improvement two years after the initial purchase/deposit) and it would be much easier to simply convert the initial deposit into an equivalent amount paid at the time of acquisition. As far as a yes/no decision is concerned, the estimated IRR would be more than adequate.

 

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Reply: 1.1
From: Ian Redman


Hi There,

We have recently bought PIA Personal and we're about to make an offer on an Investment property. Please could you clarify if PIA Personal has the facility to enter a revolving line of credit type loan. We are expecting to get approval on a loan of this type. The loan is from Rams and consist of us putting all our money into the loan and fast tracking are repayments. Could you explain if possible how on PIA Personal we can enter this type of loan and get the bottom line figure correct on how much after tax the investment property will cost/income?.

Regards


Ian Redman