Hi all,
Playing with jaffasofts calculator (see link at bottom of my posts) for an IP we’re looking at..and thought i’d post one of the various results
Not + CF [biggrin]
11 Second Solution:
Rent = 250
Occupancy rate = 100Percent
Solution = $125000.00
Asking price = $290000Closing costs:
Deposit 0 Percent = $0.00
Legal fees = $800
Stamp duty = $12015.00
Mortgage app fees = $475
Mortgage insurance = $0
Valuation fees = $0
Other borrowing costs = $400
Clean up costs = $400
Inspection costs = $300
Other costs = $200
Total closing costs = $14590.00
Mortgage details:
Interest Only= $290000.00
Interest rate = 7 Percent
Term = 5 Years
Weekly mortgage repayments = $390.38
Total repayments for life of loan = $101500.00Annual costs:
Management fees 0 Percent = $0.00
Letting and advertising = $0
Body corp fees = $0
Rates = $800
Utility rates and fees = $400
Insurance = $350
Miscalanious costs = $500
Land tax = $300
Maintenance 5 Percent = $650.00
Other ownership costs = $0
Total annual costs = $3000.00Summary:
Total annual rent = $13000.00
Total annual mortgage = $20300.00
Total annual costs = $3000.00
Total annual cashflow = $-10300.00
Total funded costs = $14590.00
Risk free return = $583.60 Bank interest rate of 4 Percent.
Annual Cash On Cash Return = -70.60 Percent
Cashflow Positive Weekly = $-198.08Any thoughts on the above calculations?
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow Calculator$300 K Property
11 Second Solution:
Rent = 250
Occupancy rate = 100Percent
Solution = $125000.00
Asking price = $300000Closing costs:
Deposit 0 Percent = $0.00
Legal fees = $800
Stamp duty = $12605.00
Mortgage app fees = $475
Mortgage insurance = $0
Valuation fees = $0
Other borrowing costs = $400
Clean up costs = $400
Inspection costs = $300
Other costs = $200
Total closing costs = $15180.00Mortgage details:
Loan Principle and Interest = $300000.00
Interest rate = 7 Percent
Term = 5 Years
Weekly mortgage repayments = $403.85
Total repayments for life of loan = $105000.00Annual costs:
Management fees 0 Percent = $0.00
Letting and advertising = $0
Body corp fees = $0
Rates = $800
Utility rates and fees = $400
Insurance = $350
Miscellaneous costs = $500
Land tax = $300
Maintenance 5 Percent = $650.00
Other ownership costs = $400
Total annual costs = $3400.00Summary:
Total annual rent = $13000.00
Total annual mortgage = $21000.00
Total annual costs = $3400.00
Total annual cashflow = $-11400.00
Total funded costs = $15180.00
Risk free return = $607.20 Bank interest rate of 4 Percent.
Annual Cash On Cash Return = -75.10 Percent
Cashflow Positive Weekly = $-219.23REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorHi Redwing,
Is the property new ? If so then you can add in the tax benefits (depreciation included) as other income in your calcs – in figures would make your cashflow a bit better. I recently bought the ID and was advised that this is where you add the benefit.
Also if new you wouldn’t really need to allow $650 pa for maintenance costs for at least first five years..
Are you planning on managing it yourself ? If so do you have other properties you have done this with ? I would imagine this could be a headache
If you don’t mind my asking where is this property? It is just that the return of only %250pw sounds awfully low for purchase price of 290,000 – is this in a city suburb ?…MIKALA
Hi MIKALA
I presume it would be too hard for Jaffasoft to guestemate Depreciation Benefits, but your right and a quick PM to Depreciator should help..this IP is 96-97.
We know the tenants well..great people you could say[biggrin]
A tax variation form would also assist.
I generalised with some of the prices such as the $650..it may cost nothing for the year, but I always like to add a margin for the unexpected.
Rent of $250 -$270 I think is median for the Area..
IP is in Perth and Jaffas Stamp Duty calculator hasn’t been update for a while either..
Thanks for the post[thumbsup2]
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorFrom WIZARDS Purchasing costs Calculator..
Purchase price of home : $290,000
State of purchase : WA
Loan amount required : $290,000Purchase stamp duty : $10,484.95
Mortgage stamp duty : $1,015.00
* Mortgage insurance : Please refer to a wizard consultant [biggrin]Your legal costs – estimate : $600.00
Wizard establishment fee : $760.00
Total cost : $12,859.95[grad]
INFOCHOICE has the same old calculator Westpac had..lots of fun [exhappy]
$290k
Monthly payments FI-IO at 7% (should be able to get less)
= $1,691.67 p/mth
= $390.38 p/wk“LINK TO INFOCHOICE”
INFOCHOICEREDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorWestpac used to have a great little calculator with a RED LINE GRAPH that you could play around with by altering amounts, interest payment type, length of loan , rate etc..
had a look and didn’t like the new format, anyone else recommend anything?
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorHi Redwing,
Out of the 300K, what value is the dirt worth ?? Is it up around the 70 to 80% mark ??
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Awaiting figures from the REA for floor plans of the property , photo’s and comparable sales in the area as i want to dot my “i’s” and cross my “t’s” when i approach the bank with my documents..
I’m looking to do up a spreadsheet etc and will have a look at http://www.excelaustralia.com.au tonight to play with the figures..
ID sounds good Mikala..I’ll have a look at the trial version.
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow Calculator
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