Your cost/(income) per week

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From: Trina Blum


Hi,

I've just purchased PIA but haven't received the instructions etc in the mail (just downloaded). I have put all the info in and ended up with $33 (in black) in the Your cost/(income) per week. Dumb question but does this mean it's costing me $33 or paying $33? I'm presuming because the after-tax cash flow is a negative amount that it is costing me money but I just want to double check. It is showing the IRR as 36.15%.

If it is costing me this much per week, is this a bit high - is there a limit to how much I should really be paying out for a property?

Regards
Trina
 
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Reply: 1
From: Trina Blum


Further to my last post after some fiddling around I think I have worked out that it is when the figure is in brackets that it is positive cashflow - correct?

Trina
 
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From: Webmaster (Somersoft)


The "bottom line" for any investment is answering how much am I going to invest and what return am I going to get on that investment. In the PIA, the "After-tax cash flow" gives you the amount of money flowing into (+ve amounts) or out of (-ve amounts)your pocket each year, after tax is taken into account. To present this on the bottom line as the "Cost per week", it is divided by 52 and the sign changed. However, it gets to be a bit confusing if the investment is cash positive because this would then appear as a -ve cost! Thus, any positive cash flow is presented in brackets and the title is shown as "Cost/(Income) per week".

It is confusing, but in the Settings Menu (Preferences), you can switch this convention to show "Income/(Cost) per week" if you think it is less confusing.
 
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