Tool · Buyer and investor reality
What needs to happen?
Reverse underwriting. Instead of predicting an outcome, this works backwards from one: the growth a target value requires, the rent that makes holding cash-flow neutral, the interest rate that breaks a budget, and the price that would meet a yield. Every figure below is a calculation from your inputs — not a forecast, not an assessment of whether any of it is likely, and not advice.
Required compound annual growth
4.56%
Moving from $800,000 to $1,000,000 over 5 years requires this rate of compound growth every year. Compare it with the market's own 3, 5 and 10-year history before deciding what to make of it.
Cash-flow-neutral rent
$1,182/wk
At the rent you entered the property returns a 4.23% gross yield. The figure shown is the weekly rent at which rental income covers loan repayments and ownership costs before tax.
Budget break-even rate
6.98%
The interest rate at which annual repayments plus ownership costs consume your $60,000 housing budget. Above it, the shortfall has to come from somewhere else.
Price for a 5% gross yield
$676,000
The purchase price at which the rent you entered produces a 5% gross yield. It is a factual comparison with your price, not a valuation.
A 1 percentage point rate rise
$5,072 more per year
Offsetting it entirely through rent would take another $98 a week — 15.0% rent growth on your current figure. Whether that is plausible depends on the rental conditions in that market, which our suburb research covers separately.
Calculation, not a forecast. Results use your inputs only, exclude tax treatment, and take no account of your circumstances. This is general information, not financial, credit or property advice.