Investment Property Report for a Sydney-Based Property (Other (Not Listed) Sample)

227457050800Investment Report00Investment Report438151898650022075659461500
47688508509030th August 20150030th August 2015DESCRIPTIVE PROPERTY INVESTMENT ANALYSIS
9461531750Client: (Name)00Client: (Name)95098193142Consultant:00Consultant:
10241373736Property: Sydney, Australia00Property: Sydney, Australia100025234315Description: Investment property (2 residential units, 1 office (large), 2 small offices00Description: Investment property (2 residential units, 1 office (large), 2 small offices
102412122580Status: Under occupancy 00Status: Under occupancy
936758255Current rent (annual): AU$169,00000Current rent (annual): AU$169,000
3890513450491Property value 3,238,387 3,238,387$1,500,00000Property value 3,238,387 3,238,387$1,500,0003840480271475 Ten (10) year projected results 00 Ten (10) year projected results 1828800446100Property value $1,500,00000Property value $1,500,0001821485271475Assumptions00Assumptions438912568450247253922758SUMMARY00SUMMARY
3898900274320Annual after-tax return126,633 00Annual after-tax return126,633 4222751445489PERFPRMANCE PROJECTIONS00PERFPRMANCE PROJECTIONS39281101036320Annual after-tax return 00Annual after-tax return 3927475730250Selling cost & CGT 130,85900Selling cost & CGT 130,8593920490883920Equity 1,417,17800Equity 1,417,1783891280579120 IF SOLD 00 IF SOLD 3906825426720Net Present Value 377,62900Net Present Value 377,6293891585121920Equity 2,038,38300Equity 2,038,38318519651035050Taxable income -$464,77500Taxable income -$464,7751851965882650Interest rate 4.08% pa00Interest rate 4.08% pa1844345730250Inflation rate 5.5%00Inflation rate 5.5%1836725577850Gross rate 00Gross rate 1829105425450Net yield 10.985%00Net yield 10.985%1829105273050Gross yield 7.6%00Gross yield 7.6%1829105120650Investment $300,00000Investment $300,000
102235170485Investment Analysis 10-year projected performance00Investment Analysis 10-year projected performance292101720850102413384759End of year 2015 Yr 1 Yr2 Yr5 Yr1000End of year 2015 Yr 1 Yr2 Yr5 Yr10
876302459990Total deductions00Total deductions804672598725Tax credit (single) - - - - -00Tax credit (single) - - - - -911102918460Rate of Return (IRR) 37 -69 -25 23 37 00Rate of Return (IRR) 37 -69 -25 23 37 885952771775After-tax cashflow -300,000 -224,992 -142,320.3 -34,111.2 126,633.200After-tax cashflow -300,000 -224,992 -142,320.3 -34,111.2 126,633.2774702000885Building depreciation 31,500 31,500 31,500 31,500 31,50000Building depreciation 31,500 31,500 31,500 31,500 31,500879601861185Non-cash deductions 00Non-cash deductions 90500978535Inflation 5.5 5.5 5.5 5.5 5.500Inflation 5.5 5.5 5.5 5.5 5.583820822325Capital growth 8 8 8 8 800Capital growth 8 8 8 8 8793751263015Deductions00Deductions800101412875Interest (I/O) 69,413.6 69,413.6 69,413.6 69,413.6 69,413.6 00Interest (I/O) 69,413.6 69,413.6 69,413.6 69,413.6 69,413.6 784101706880Pre-tax cashflow -300,000 -224,992 -142,320.3 -34,111.2 126,633.200Pre-tax cashflow -300,000 -224,992 -142,320.3 -34,111.2 126,633.285090368935Investment 300,000 - - - - 00Investment 300,000 - - - - 102413214478Purchase costs 68,319 - - - -Y00Purchase costs 68,319 - - - -Y10193058420Property value 1,500,000 1,620,000 1,749,600 2,203,992 3,238,38700Property value 1,500,000 1,620,000 1,749,600 2,203,992 3,238,387
8572546990Loaned amount 1,200,000 1,200,000 1,200,000 1,200,000 1,200,00000Loaned amount 1,200,000 1,200,000 1,200,000 1,200,000 1,200,00085725193675Equity 300,000 420,000 549,600 1,003,992 2,038,38300Equity 300,000 420,000 549,600 1,003,992 2,038,383
77638165004Gross Annual rent 164,775 173,838 183,399 215,354 281,46000Gross Annual rent 164,775 173,838 183,399 215,354 281,460
87463133957Rental expenses 3,000 3,180 3,787.4 5,068.4 00Rental expenses 3,000 3,180 3,787.4 5,068.4
77470382905Loan cost 5,881 1,000 1,000 1,000 000Loan cost 5,881 1,000 1,000 1,000 077470236220Fittings depreciation 16,000 17,280 18,662 23,509 34,54300Fittings depreciation 16,000 17,280 18,662 23,509 34,543
94615205105Pre-tax equivalent 8.24 00Pre-tax equivalent 8.24
Investment Disclaimer: The performance projections above are illustrative of expected outcomes computed from input values, and other model-based assumptions. Therefore, the figures can be varied from the actual performance, and are in no way intended to guarantee future performance. Though provided in good faith, it’s also give on the basis that no person will through full or partial implementation of the information hold the consultant, his affiliates or sponsor firm(s) responsible for its use or misuse.
Further Notes Attaching to the Spreadsheet Items
PROPERTY VALUE
The property/market value refers to the gross worth of the property. It therefore presents an estimate of how much it could sell in the mainstream market. The property book value on the other hand refers to sum total of the payment made for the property and any immediate renovation costs associated with purchase of the property.

AU$

Property price

1,500,000

Renovation costs

0

Total book value

1,500,000

Property market value

1,500,000

Purchase costs
These are costs associated with the purchase and transfer of the property from the seller to the buyer. At norm, it includes a solicitor’s conveyance fee, mortgage registration fees and stamp duty due on the property. Care should however be exercised that these values are likely to change from one financial year to another. Therefore, consult your property advisor for updated rates if acquiring the property in other years other than 2014/15.

AU$

Mortgage Registration Fee

110

Transfer Fee

219

Stamp duty

67,990

Total Purchase Costs

68,319

INVESTMENT vs. LOANS
Property investment often requires an initial outlay of monies tied to the property purchase. While the initial outlay is paid up-front, the balance is often paid in manageable periodic installments. Optionally, you may seek loan funding from your preferred financier in completing the property cost balance. Contextually, this report assumes your ability to pay 20% of the purchase cost, while the balance is paid via a loan arrangement. Consequently, the total cost of the property will be computed as below.

Investment

Loan

Total cost


AU$

AU$

AU$

Property costs

300,000

1,200,000

1,500,000

Renovation cost

0

0

0

Purchase costs

0

68,319

68,319

Furniture & other fittings

0

0

0

Loan costs (@4.08% pa)


48,573

48,573

Total

300,000

1,316,892

1,616,892

CAPITAL GROWTH AND INFLATION RATES
The rate of capital growth refers to the investor’s anticipated annually compounded increase in property value from purchase. However, with the NWS price index predicted to grow at between 8 and 12 per cent, astute investment savvy requires that the minimum or an averaged prediction value is assumed. F...