PropCalc: Investment property cash flow calculator
Australian property investors have been enjoying a prolonged period of low interest rates for quite some time now. In fact, it is said that approximately one million Australian property owners have never seen a rise in interest rates.
However, this run of low interest rates is tipped to end soon with many property experts predicting that interest rate hikes will come as early as mid-2022.
Understandably, this has both prospective and existing property investors wondering what the impact on their loan repayments will be.
This is where PropCalc, BMT’s investment property cash flow calculator, comes into play.
If you already have a property, you can use PropCalc to model the impact of anticipated interest rate rises on your cash flow.
And if you’re looking to purchase, PropCalc can help to work out the cash flow position of any investment property you might have your eye on.
The first step towards buying any rental property is to understand the cash flow. To begin with, you need to assess your financial situation, determine what you can afford and calculate the out-of-pocket expenses.
PropCalc allows you to explore your property buying options and helps to make an informed decision on whether a property is the right one to purchase.
PropCalc uses property-specific data to give a realistic impression of cash flow by calculating the difference between rental income and expenses. It also estimates the claimable tax depreciation and the likely end tax outcome.
Simply enter the address of the property and PropCalc will pre-fill with reliable data which can then be adjusted for various scenarios.
When working out expenses, PropCalc factors in the total amount required for finance, and ongoing costs including maintenance, rates, insurance and much more. PropCalc can also model the impact of interest rate changes on cash flow.
The tool also determines the property’s gearing level based on the investor’s financial situation, helping to choose the appropriate property for any investment strategy. Compare multiple properties to determine which one best meets your needs.
PropCalc also helps with property research. It will prefill suburb price averages in line with the property you’re interested in, and features live market data to show how a suburb compares to others in terms of rents and capital growth.
Understand market trends with a comparison of the suburb’s house and unit median values. Learn about the suburb with a snapshot of statistics including growth, number of sales and the listing duration. Stay abreast of future projects with the nearby planning applications and get to know the neighbours with demographic information.
PropCalc is available as an app so that properties can be compared at property inspections. After inspecting the property, add images and enter in your notes to have them included in the report. Or you can download the report as a PDF and take notes when inspecting the property.