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 | $37,388 |
| Rent after vacancy | $35,950 |
| Operating expenses | −$8,573 |
| Net operating income | $27,377 |
| Loan repayments | −$52,358 |
| Gross yield | 4.15% |
| Net yield | 3.04% |
| Break-even rent | $1,219/wk |
| Cash-on-cash return | -10.65% |
| Annual cash flow | $-24,981 ($-480/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 | $-30,686 | $-68,982 |
| 3 | $927,271 | $696,861 | $230,410 | $-30,448 | $-95,759 |
| 5 | $945,909 | $678,467 | $267,442 | $-30,223 | $-119,284 |
| 10 | $994,160 | $619,295 | $374,865 | $-29,729 | $-161,452 |
Base
Growth 4% · Rent 3% · Rate 6.1%
| Year | Value | Loan | Equity | Cash flow | Net position |
|---|---|---|---|---|---|
| 1 | $936,000 | $711,322 | $224,678 | $-24,981 | $-34,773 |
| 3 | $1,012,378 | $692,299 | $320,079 | $-23,377 | $13,062 |
| 5 | $1,094,988 | $670,814 | $424,174 | $-21,687 | $72,926 |
| 10 | $1,332,220 | $604,139 | $728,081 | $-17,061 | $282,040 |
Bull
Growth 6% · Rent 4.5% · Rate 5.35%
| Year | Value | Loan | Equity | Cash flow | Net position |
|---|---|---|---|---|---|
| 1 | $954,000 | $710,031 | $243,969 | $-20,870 | $-11,371 |
| 3 | $1,071,914 | $688,423 | $383,491 | $-18,225 | $90,351 |
| 5 | $1,204,403 | $664,381 | $540,022 | $-15,343 | $214,725 |
| 10 | $1,611,763 | $591,746 | $1,020,017 | $-6,968 | $642,420 |
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.