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 | $43,680 |
| Rent after vacancy | $42,000 |
| Operating expenses | −$8,972 |
| Net operating income | $33,028 |
| Loan repayments | −$52,358 |
| Gross yield | 4.85% |
| Net yield | 3.67% |
| Break-even rent | $1,227/wk |
| Cash-on-cash return | -8.24% |
| Annual cash flow | $-19,330 ($-372/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 | $-25,036 | $-63,332 |
| 3 | $927,271 | $696,861 | $230,410 | $-24,704 | $-78,668 |
| 5 | $945,909 | $678,467 | $267,442 | $-24,386 | $-90,565 |
| 10 | $994,160 | $619,295 | $374,865 | $-23,658 | $-102,846 |
Base
Growth 4% · Rent 3% · Rate 6.1%
| Year | Value | Loan | Equity | Cash flow | Net position |
|---|---|---|---|---|---|
| 1 | $936,000 | $711,322 | $224,678 | $-19,330 | $-29,122 |
| 3 | $1,012,378 | $692,299 | $320,079 | $-17,404 | $30,496 |
| 5 | $1,094,988 | $670,814 | $424,174 | $-15,374 | $102,814 |
| 10 | $1,332,220 | $604,139 | $728,081 | $-9,817 | $346,238 |
Bull
Growth 6% · Rent 4.5% · Rate 5.35%
| Year | Value | Loan | Equity | Cash flow | Net position |
|---|---|---|---|---|---|
| 1 | $954,000 | $710,031 | $243,969 | $-15,219 | $-5,720 |
| 3 | $1,071,914 | $688,423 | $383,491 | $-12,076 | $108,045 |
| 5 | $1,204,403 | $664,381 | $540,022 | $-8,654 | $245,521 |
| 10 | $1,611,763 | $591,746 | $1,020,017 | $1,281 | $711,218 |
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.