Feedback on Forecast Spreadsheet/Tool for 1st Property Purchase (Dual Occupancy)

Discussion in 'Loans & Mortgage Brokers' started by Mr. Tall, 16th Mar, 2019.

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  1. Mr. Tall

    Mr. Tall Member

    Joined:
    10th Mar, 2019
    Posts:
    8
    Location:
    NSW
    Hi everyone,

    My partner and I are looking at purchasing our first property purchase. We are still looking at whether we can claim First Home Buyer Assistance scheme before proceeding (pending response from NSW OSR), though in the mean time I was hoping for your feedback regarding the attached simple forecast tool.

    I've set it up so that;
    • Clear cells are formula driven based on assumptions (orange cells)
    • Assumptions are located on both sheets and can be adjusted as required
    • I built in to the secondary dwelling the first 6 months as Owners Occupied. Not 100% how expenses on the property would be handled in this period from a tax perspecitive, though have left it in as a worst case scenario
    Is there anything else that stands out to you? Assuming I've put it together correctly and ignoring any potential benefits from depreciation then Profit/(Loss) Before tax and Repayment of the principal component of the loan is for the;
    • first 12 months ($2.4k) loss due to inital expenses and 6 months rent free for secondary dwelling, and
    • second 12 months $9.8k profit
    Again, thanks for your help and advice around all of this.

    Cheers

    MT
     

    Attached Files:

  2. FrivolousPanda

    FrivolousPanda Well-Known Member

    Joined:
    21st Sep, 2016
    Posts:
    255
    Location:
    Sydney
    Hi,

    Noticed a few things you may want to think about:
    1. Zero weeks unoccupied. In my experience, whenever there is a change in tenants, a week sometimes even two, often lost during the change over due to time for outgoing inspection report and rectification work. Also depends on how tight the rental market is.
    2. Leasing cost and releasing cost, usually a week or two weeks rent
    3. Repairs at 0.4% of purchase cost may be light depending on age and type of property. This cost is also likely to be lumpy for big items like hot water. Note that replacement may not be expensed and is depreciated over a few years. R&M expenses can also occur when tenants change over as bond may not cover everything though hopefully insurance covers it.
    4. Bank fees at $120, not sure if it's a bit light on as CBA's wealth package is $399 from memory but you should use whoever you are most likely to borrow from
    5. Interest on the loan should decrease as you repay principal
    Hope it helps.
     
  3. Mr. Tall

    Mr. Tall Member

    Joined:
    10th Mar, 2019
    Posts:
    8
    Location:
    NSW
    Hey Panda,

    Thanks for your response - it certainly does help. I've taken your points and improved the spreadsheet accordingly.

    Regardign point 5, I have left as is for now. As the ultimate goal is for this to be an investment property I would aim to refinance/perform whatever steps are necessary to convert to an Interest Only loan after the initial 6-12 months therefore I suspect the interest repayment will only change at that point only if interest rates are changing as I won't be paying further principal.

    If you or anyone else has any further feedback I'm all ears! Exciting times buying our first property, really want to have as many bases covered as possible!

    Cheers

    MT
     

    Attached Files: