How to figure out if ip will ne natural if put on p&i repayment?

Discussion in 'Property Information Resources & Tools' started by HBK, 29th Sep, 2021.

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  1. HBK

    HBK Well-Known Member

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    How do you guys figure out if your ip would be natural or negative once put on p&i ?
     
  2. Trainee

    Trainee Well-Known Member

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    Rule of thumb rental yield less interest rate less 2% for principal less 1% for expenses.

    but thats pretty rough. Have never been too concerned about exact cashflows tho. Getting to +/- 1% of the purchase price would be good enough.

    slightly negative, or neutral, or slightly positive wont change my decision to buy or not.
     
  3. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    I have a spreadsheet I can send you that will assist with these calculations?
     
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  4. HBK

    HBK Well-Known Member

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    Hey yes please that would help
     
  5. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    Shoot me an email - [email protected] and will forward it you with pleasure, cheers.
     
  6. Annie33rd

    Annie33rd Well-Known Member

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    Could I grab it as well please?
     
  7. Annie33rd

    Annie33rd Well-Known Member

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    Hi Colin,
    Could I grab it as well please?