Can I afford an investment property – how much I need to pay for loan repayment and other on-going costs?
Will this property be a negative gearing investment property or a positive cash flow one – can I get any tax refund from the government or I have to pay more tax?
What the tax deductions I can get from investing on this rental property – how this will affect the tax and my after tax income as well as after tax cash flow?
How much do I need to pay out of pocket for this investment property – how much it will cost me on a weekly and annual basis before and after tax? Does investing in this property affect my life-style?
If anything happens, for example, one of us loses the job, are we still able to afford to control the ownership of this investment property?
The above questions are just a few questions that I asked myself before I decided to buy my first investment property.
In early 2008 I created an investment property calculator in Excel spreadsheet for my own personal use in order to help me with my property investment analysis. I used this investment property calculator workbook on several potential properties located in Sydney. In late 2008, I bought an one-bed investment apartment in Sydney South and secured an interest only loan including 100% of the property purchase price ($315,000) plus of the stamp duty etc. Now this once negative gearing property has become a positive cashflow investment property, and the market value of this investment property has gone up to $350,000.
Several friends of mine have tried this investment property calculator in Excel and found it is helpful by saving their time to do all the manual paper calculations. They also felt that they had made informed decision because the calculator provides them a lot of information on what costs they should factor in when purchasing investment property and lets them simulate how the return on investment (ROI) changes when the costs and rental change.
In 2009, I decided to provide a simple version of this property investment calculator FREE for download, and now you can download this useful tool for FREE. Since then the free investment property calculator has been downloaded for more than 34,000 times by investors from allover the world who are interested in buying properties in Australia. It has been recommended by the Australian Property Investor (API) Magazine.
In April 2012, I built two more free calculators for NRAS and SMSF investment property respectively. The free NRAS investment property calculator suits people who want to buy an NRAS property under the NRAS scheme. The free SMSF investment property calculator is built to estimate investing in property through a Self Managed Superannuation Fund (SMSF).
Here are the links to the information pages of the above mentioned free property investment Excel calculators.
You can find lots of other useful property tools from the free Excel calculators page on my website.