How We Calculate Your Projections

Investment Calculations Explained

Financial Projections

Loan Amount: Purchase price minus your cash deposit and any equity release
Monthly Repayments: Standard mortgage formula for principal and interest, plus interest-only payments on equity release
Annual LMI: Lenders Mortgage Insurance cost spread over the loan term
Total Upfront Costs: All purchase costs including stamp duty, legal fees, and annual LMI portion except for equity release loan. 

Income & Returns

Gross Income: Expected weekly rent multiplied by 52 weeks
Property Management: Annual rent multiplied by management percentage
Total Expenses: All annual costs including rates, insurance, maintenance, loan repayments, equity repayments and LMI fee divided by the loan term.
Net Income: Gross income minus all expenses
Yield Calculations: Income as a percentage of purchase price (gross and net) 

Growth Projections

Equity Estimates: Purchase price multiplied by various annual growth scenarios (8%, 10%, 12%, 16%)

Important Disclaimers

What's Included

Current market rental estimates based on comparable properties

Standard loan terms at current interest rates

Typical ongoing property expenses

Conservative to above average potential returns 

What's NOT Included

Vacancy periods between tenants

Interest rate changes over time

Unexpected major repairs

Tax implications (consult your accountant)

Market downturns or property value decreases

Key Assumptions

Rental Income: Assumes consistent tenancy at market rates

Interest Rates: Based on current rates (subject to change)

Property Growth: Past performance doesn't guarantee future results

Expenses: Based on typical costs (may vary)

Professional Advice Required

These calculations are estimates to help you understand potential investment scenarios. They are not financial advice.

Always consult qualified professionals:

- Financial advisors for investment strategy

- Accountants for tax implications

- Buyers Agent for market insights

- Mortgage brokers for loan options

Questions? For detailed explanations of any calculations or assumptions used in your property analysis, please contact us. We're committed to full transparency in our projections.