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 | $42,172 |
| Rent after vacancy | $40,550 |
| Operating expenses | −$8,876 |
| Net operating income | $31,674 |
| Loan repayments | −$52,358 |
| Gross yield | 4.69% |
| Net yield | 3.52% |
| Break-even rent | $1,225/wk |
| Cash-on-cash return | -8.82% |
| Annual cash flow | $-20,684 ($-398/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 | $-26,390 | $-64,686 |
| 3 | $927,271 | $696,861 | $230,410 | $-26,081 | $-82,764 |
| 5 | $945,909 | $678,467 | $267,442 | $-25,785 | $-97,448 |
| 10 | $994,160 | $619,295 | $374,865 | $-25,113 | $-116,892 |
Base
Growth 4% · Rent 3% · Rate 6.1%
| Year | Value | Loan | Equity | Cash flow | Net position |
|---|---|---|---|---|---|
| 1 | $936,000 | $711,322 | $224,678 | $-20,684 | $-30,476 |
| 3 | $1,012,378 | $692,299 | $320,079 | $-18,835 | $26,317 |
| 5 | $1,094,988 | $670,814 | $424,174 | $-16,887 | $95,651 |
| 10 | $1,332,220 | $604,139 | $728,081 | $-11,553 | $330,851 |
Bull
Growth 6% · Rent 4.5% · Rate 5.35%
| Year | Value | Loan | Equity | Cash flow | Net position |
|---|---|---|---|---|---|
| 1 | $954,000 | $710,031 | $243,969 | $-16,573 | $-7,074 |
| 3 | $1,071,914 | $688,423 | $383,491 | $-13,550 | $103,804 |
| 5 | $1,204,403 | $664,381 | $540,022 | $-10,257 | $238,140 |
| 10 | $1,611,763 | $591,746 | $1,020,017 | $-696 | $694,729 |
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.