Investment deal analyser
An institutional-style model of a single residential purchase. Every figure below is derived from the inputs on the left — no hidden assumptions, no score. National median house: $1,004,000.
Or work out the full purchase costAcquisition
What it takes to complete the purchase
- Deposit
- $180,000
- Transfer duty
- $49,070
- Other costs
- $5,400
- Cash required
- $234,470
- Loan amount
- $720,000
- LVR
- 80.0%
- Monthly repayment
- $4,363
- Annual interest
- $43,920
Transfer duty is an estimate using standard residential scales and excludes concessions, foreign buyer surcharges and land tax.
Operating position
First full year, at today's rent and rate
| Gross annual rent | $34,216 |
| Rent after vacancy | $32,900 |
| Operating expenses | −$8,371 |
| Net operating income | $24,529 |
| Loan repayments | −$52,358 |
| Gross yield | 3.80% |
| Net yield | 2.73% |
| Break-even rent | $1,215/wk |
| Cash-on-cash return | -11.87% |
| Annual cash flow | $-27,829 ($-535/wk) |
Scenarios
Bear, Base and Bull over one to ten years
Bear
Growth 1% · Rent 1% · Rate 7.1%
| Year | Value | Loan | Equity | Cash flow | Net position |
|---|---|---|---|---|---|
| 1 | $909,000 | $712,826 | $196,174 | $-33,535 | $-71,831 |
| 3 | $927,271 | $696,861 | $230,410 | $-33,343 | $-104,375 |
| 5 | $945,909 | $678,467 | $267,442 | $-33,165 | $-133,762 |
| 10 | $994,160 | $619,295 | $374,865 | $-32,790 | $-190,998 |
Base
Growth 4% · Rent 3% · Rate 6.1%
| Year | Value | Loan | Equity | Cash flow | Net position |
|---|---|---|---|---|---|
| 1 | $936,000 | $711,322 | $224,678 | $-27,829 | $-37,621 |
| 3 | $1,012,378 | $692,299 | $320,079 | $-26,388 | $4,272 |
| 5 | $1,094,988 | $670,814 | $424,174 | $-24,870 | $57,858 |
| 10 | $1,332,220 | $604,139 | $728,081 | $-20,712 | $249,676 |
Bull
Growth 6% · Rent 4.5% · Rate 5.35%
| Year | Value | Loan | Equity | Cash flow | Net position |
|---|---|---|---|---|---|
| 1 | $954,000 | $710,031 | $243,969 | $-23,718 | $-14,219 |
| 3 | $1,071,914 | $688,423 | $383,491 | $-21,324 | $81,431 |
| 5 | $1,204,403 | $664,381 | $540,022 | $-18,715 | $199,200 |
| 10 | $1,611,763 | $591,746 | $1,020,017 | $-11,127 | $607,737 |
Net position is equity plus cumulative cash flow, less the cash required at settlement. Projections are arithmetic consequences of the assumptions above, not forecasts or advice.