PIA Pro - Multiple Properties - What if analysis

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From: Jeff Williams


Hi

We have the PIA software and used it to provide a feasibility analysis and business case for our first investment purchase.

One of the features that would be good to have in future versions of the software is the ability to have multiple properties included in the analysis sheet.

It would be a sort of PIA cross with property management pro.

For future properties (we are thinking of adding another two) I am doing the what if analysis on Spreadheet and confirming the figures with PIA.

Any comments anyone ?
 
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From: Webmaster (Somersoft)


The PIA software has several facilities already which help in this regard. Firstly there is a "Multiples" report that you can easily generate based on purchasing multiples of the property under review. Next there is the Portfolio report which you can use to examine the cash flow analysis of any number of different properties - these properties can have different attributes and be purchased years apart. Thirdly, there is the Wealth Builder spreadsheet (Pro, Fpu versions) which allows you to interactively simulate the purchase of a portfolio of properties into the future, showing LVRs, Affordability indices and cash savings at each stage.
 
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From: Michael Sinclair


Attention Webmaster : I note your response that you can survey and simulate several/many properties and build a portfolio. Are the properties and their values all cumulative and the "parcel" of properties totalled in the one spreadsheet or do you have to run each one individually and compare externally. I need to see what the effect of purchasing a new property is on the existing portfolio. Your demo version disallows me attempting to add new properties so the result is not clear.
Many thanks,
Michael
 
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From: Webmaster (Somersoft)


The following is an extract from the PIA Help topics (Special Topics/Portfolio Analysis):

Portfolio Analysis
What is a Property Portfolio Analysis?

The analysis of a property portfolio in this case means the collation of all the property and financial data on each of a collection of properties to calculate the projected cash flows and rate of return for a specified time frame. To determine the after-tax cash flow and rate of return, the investor's current taxable income from other sources is also required.
The aim of the analysis can be two-fold:
Firstly, it can be used to calculate the investor’s current taxable income by taking account of all of the rental income, rental expenditure and depreciation deductions associated with the property portfolio. The adjusted taxable income can then be used to assess the tax implications and rate of return for yet another investment property.

Secondly, it can be used simply to assess the cash flows and rate of return of the property portfolio itself.

How is it implemented in the program?

The program allows the user to collate the property data from a specified set of PIA files to calculate the combined cash flows and the rate of return for the portfolio. The program obtains all of the relevant data on each property from the files, apportioning rents and property expenses according to whether the property is wholly or partly owned by the investor. The time frame for the portfolio cash flow projections is determined by the settings in the current spreadsheet (i.e. Years specified) and uses the year of purchase specified in each file to determine the corresponding data to be included in the collation.

The program ignores the data on investor's taxable income stored in each of the files as the analysis requires current taxable income (taken from the current spreadsheet), excluding income and expenditure on investment properties.
 
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