Property Investment - Property 4 Sale 4 Investors

1. What does this Property Investment Calculator tell me?

2. How accurate is the Property Investment Calculator?

3. Does the Calculator take inflation into account?

4. Can I use the Property Investment Calculator for any type of property?

5. How much does it cost to use the Property Investment Calculator?

6. This is exactly what I need on my website, how can I organise a link to my site?

7. Does the calculator take into account HEC and Medicare?

8. The income tax rates change from July 2008, how does this effect the calculations?

9. How much rent should I allow?

10. What expenses should I allow for?

11. How does the State a particular property is in affect the weekly cost to own it?

12. What does the “weekly cost” figure mean?

13. Do I allow for GST when entering the purchase price?

14. What type of loan does the calculator allow for?

• What does this Property Investment Calculator tell me?

  The Property Investment Calculator has been designed to work out the approximate cost of owning an investment property based upon certain criteria.

  Back to Top

• How accurate is the Property Investment Calculator?

  The Property Investment Calculator is only as accurate as the information you input. It can never be 100% accurate as each mortgage loan will have varying fees.

  The biggest “grey” area of any property investment calculator will be the accuracy of the expenses. Expenses are the hardest cost to estimate.

  Get that estimate right and you'll be pretty close!

  Back to Top

• Does the Calculator take inflation into account?

  Yes. The Property Investment Calculator applies the Consumer Price Index rate to the inputted wages and rent calculation.

  Back to Top

• Can I use the Property Investment Calculator for any type of property?

  Yes. It works for all investment properties - whether they are residential, commercial, industrial or even storage units.

  Back to Top

• How much does it cost to use the Property Investment Calculator?

  The Property Investment Calculator is completely free to use, as opposed to other less user friendly calculators on the market which cost in excess of $300 to use.

  So enjoy ours for free!

  Back to Top

• This is exactly what I need on my website, how can I organise a link to my site?

  Please send a request to info@washingtonbrown.com.au and we will review your site and assess the suitability.

  Back to Top

• Does the calculator take into account HEC and Medicare?

  No, the tax rates used are exclusive of these rates.

  Back to Top

• The income tax rates change from July 2008, how does this effect the calculations?

  We have already allowed for this. When you click onto year 2 of the calculator, the 2008/09 income tax rates have been used. We obviously cannot predict the future and therefore have continued to use this rate of tax for the following years.

  Back to Top

• How much rent should I allow?

  Please enter your likely rent on a per week basis. The calculator automatically allows a 2 week “Leasing up” period, thus any figure you input will only be multiplied by 50 not the full 52 weeks of the year.

  If you are buying a commercial or industrial property you may wish to reduce the weekly estimated rent per week as these types of properties tend to take longer to find a tenant.

  Please allow for management expenses in the expenses section of the calculator.

  Return To Property Investment Calculator

  Back to Top

• What expenses should I allow for?

  The types of things that you need to allow for are:

  • Strata levies
  • Sinking funds
  • Property management fees if using a PM
  • Bank fees and charges
  • Maintenance and repairs
  • Land Tax
  • Rates

  In this section you can either add a lump sum amount or a drop down percentage relative to the purchase price.

  For instance if you are buying a property for $500,000 and you use the drop indicating 1%, the calculator will allow $5000 as the total expense for year 1.

  As a guide - the more expensive the property the more expenses you will need to allow.

  Return To Property Investment Calculator

  Back to Top

• How does the State a particular property is in affect the weekly cost to own it?

  It doesn't, however we have decided to include the indicative stamp duty cost because it is such a large component of the purchase equation.

  Return To Property Investment Calculator

  Back to Top

• What does the “weekly cost” figure mean?

  A negative weekly cost figure refers to the approximate out-of-pocket expense of owning the property.

  If the figure shown is a positive number, that is the estimated return you’ll receive when you own the property.

  We must stress all figures are approximate and you should always check with your financial advisor before purchasing any property.

  Return To Property Investment Calculator

  Back to Top

• Do I allow for GST when entering the purchase price?

  If the property is residential (new or old) GST doesn't apply. On new properties the developer has to pay the GST.

  In relation to commercial properties, if you are registered for GST, you will include GST in the rent you charge and are entitled to claim GST credits for any rental expenses you have paid.

  Assuming your only enterprise is the commercial property, you will need to be registered for GST if your gross rent, excluding GST, is more than $50,000 in a year. If your rent is less than $50,000 you can voluntarily register for GST.

  Return To Property Investment Calculator

  Back to Top

• What type of loan does the calculator allow for?

  The property investment calculator allows for an interest only type of loan on a fixed rate.

  Return To Property Investment Calculator

  Back to Top