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 | $37,648 |
| Rent after vacancy | $36,200 |
| Operating expenses | −$8,589 |
| Net operating income | $27,611 |
| Loan repayments | −$52,358 |
| Gross yield | 4.18% |
| Net yield | 3.07% |
| Break-even rent | $1,219/wk |
| Cash-on-cash return | -10.55% |
| Annual cash flow | $-24,747 ($-476/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 | $-30,453 | $-68,749 |
| 3 | $927,271 | $696,861 | $230,410 | $-30,210 | $-95,053 |
| 5 | $945,909 | $678,467 | $267,442 | $-29,982 | $-118,097 |
| 10 | $994,160 | $619,295 | $374,865 | $-29,478 | $-159,030 |
Base
Growth 4% · Rent 3% · Rate 6.1%
| Year | Value | Loan | Equity | Cash flow | Net position |
|---|---|---|---|---|---|
| 1 | $936,000 | $711,322 | $224,678 | $-24,747 | $-34,539 |
| 3 | $1,012,378 | $692,299 | $320,079 | $-23,130 | $13,782 |
| 5 | $1,094,988 | $670,814 | $424,174 | $-21,426 | $74,161 |
| 10 | $1,332,220 | $604,139 | $728,081 | $-16,761 | $284,693 |
Bull
Growth 6% · Rent 4.5% · Rate 5.35%
| Year | Value | Loan | Equity | Cash flow | Net position |
|---|---|---|---|---|---|
| 1 | $954,000 | $710,031 | $243,969 | $-20,636 | $-11,137 |
| 3 | $1,071,914 | $688,423 | $383,491 | $-17,971 | $91,082 |
| 5 | $1,204,403 | $664,381 | $540,022 | $-15,066 | $215,998 |
| 10 | $1,611,763 | $591,746 | $1,020,017 | $-6,627 | $645,263 |
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.