Hi Phil,
Thankyou so much for your response to my email, I understand most of it now I really appreciate it.
Just a couple of areas if you could Im still alittle vague.Capital costs- a good example of a capital cost would be a water heater.
Im still unsure why a capital cost is different to maintinence? Could you please provide abit more on this one, what it is and how do I work it out?Gross Equity- the current equity position of the property.
Is this the equity in the property Ive bought or the equity Ive used in a different property Ive used to purchase my new property.(as included in the budget section) If its the equity in the new property then does this figure go up as time goes by(as you add more to the actuals)?Net Equity- the groww equity % including the capital appreciation.
Im still confused about this one but Im hoping once I understand my question for the Gross Equity this one will make sense too.Thankyou again Phil
Im looking forward to your reply
Kind Regards
Paula SlegtenhorstPaula
Im still unsure why a capital cost is different to maintinence?A capital cost is one that can be depreciated, any other cost that cannot may fall under maintenance, to figure this out in more detail you will need to speak to your accountant.
Gross Equity- the current equity position of the property.
Is this the equity in the property Ive bought or the equity Ive used in a different property Ive used to purchase my new property.(as included in the budget section) If its the equity in the new property then does this figure go up as time goes by(as you add more to the actuals)?The equity here is the amount of equity in the purchased property and the amount will go up as you pay more off the loan.
Hope this helps
Regards
Philip Batey
JATPAC DesignsAuthor of Investment Detective
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