All Topics / Help Needed! / Software to calculate investment property costs

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  • Profile photo of PT16829PT16829
    Member
    @pt16829
    Join Date: 2003
    Post Count: 1
    May 18, 2005 - 4:16 am

    Hi all – I am a newbie to investing in property & am unsure if this is the best way to go. I am looking up investment property calculators as a guide to what I can expect to pay over the next 10 years. I found one on http://www.yourcalculators.com.au/yourmortgage/negative_gearing/negative_gearing.asp?client=yourmortgage

    But when I punched in the numbers, I found I would need a property to increase by 50% in value over 10 years for me to just to break even, even after tax losses . Am I doing something wrong here? is this your experience?

    Is there somewhere else I can check for a simulated profit/loss calculator?

    thanks !!

    Profile photo of ez-rentez-rent
    Member
    @ez-rent
    Join Date: 2003
    Post Count: 139
    May 22, 2005 - 12:48 pm

    Try my free program and see if your results are still the same..

    50% in value over 10 years is probably on the conservative side.. Although I don’t subscribe to the properly seminar chestnut of “property doubles every 7 years” crap, 50% over 10 years represents 5% per annum and thats historically less than the average return..

    Also many factors influence your cashflow and eventual gain. Depreciation is one of them.. Did the online calculator account for this??

    [email protected]

    EZ-Rent. The free tax and cashflow simulator for Australian property investors. Version 2 out now!
    http://www.ez-rent.com

    Profile photo of Kiwi-FullaKiwi-Fulla
    Member
    @kiwi-fulla
    Join Date: 2002
    Post Count: 371
    May 23, 2005 - 5:13 am

    if you are looking for an over all great tool … then I think the PIA PRO is fantastic…. and if you are looking to see how much you will be paying over a period of time …. you just need to find an amortisations spreadsheet.
    Thanks
    Kiwi

    Profile photo of DazzlingDazzling
    Member
    @dazzling
    Join Date: 2005
    Post Count: 1,150
    May 23, 2005 - 5:36 am

    Hmmm,

    I think 50% appreciation over 10 years is about 4.13% p.a. compounded….not 5%.

    PT16829 ;

    Instead of simply punching numbers into an online calculator that you don’t understand the workings of, why not start with pen / paper and calculator, then progress to your own simple spreadsheet, enter the formulae yourself and then rev it up later when you gather more knowledge.

    That way, you fully understand where the numbers are derived from, instead of punching numbers into a ‘black box’, and being confused when the answers are not what you expected.

    Cheers,

    Dazzling

    “No point having a cake if you can’t eat it.”

Viewing 4 posts - 1 through 4 (of 4 total)

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