Noob Multiple IP Cashflow Spreadsheet

I've created this cashflow spreadsheet to determine how my cashflow will be affected with each property purchase. Nothing flash, just basic excel.

This does not take rent increases into account as it is a conservative calculator, which gives you an idea of how many properties you can service at current income levels.

I hope noobs like me at the start of their journey find this helpful. Please let me know if I've overlooked anything or if you have suggestions to improve this.

 

Nice start.

1. Monthly holding costs - assume this is your rates, water, insurance, etc
2. Not 100% convinced on the tax rate accuracy, given it is stepped, however I probably need to look again
3. For me at least there is no such thing as monthly bank balance (indeed I record for it as surplus cash) - I tip every last cent into either an offset, or more likely an equity investment

My cashflow statement also includes linked assumptions such as:
- annual salary increases
- annual rental increases
- annual expense increases
- loan assumptions (which you have done)

Suggest you also need to create a balance sheet, showing your projections over the timeframe you are working against. For me it is until my planned exit from the workforce.

Make sure you also add a third tab, being a budget to track the expenses accurately.

A written investment plan is invaluable, and a rarity for most people.

 

This may help. I've built this to model out my cashflow with various scenarios of affecting loans (interest rates, IO, P&I, refinancing to reset the loan terms), income, living expenses etc. May give you ideas on a model for yourself - model is built for the scenarios I wanted to test rather than for all possibilities as it ends up being a highly complex and higher chance of errors.

I haven't documented it well as it's a tool for myself though hopefully it is self-explanatory. Note: Yellow cells are inputs. Savings offsets PPOR loan and not all loans. Happy to answer any questions.

As BarneyRubble mentioned, this does not model balance sheet i.e. what your assets are worth. It is only a cashflow sheet. It does track my Savings account balance as I wanted to know if I deplete my buffer and loan principal remaining.

Please let me know if you find any errors or peculiarities. However, no guarantees it is correct and use at your own risk.

 

I just use PIA.

From memory, it costs $245 and the cost is tax deductible

 

i wondered about the SS software. so you recommend it?

 

I wouldn’t buy an IP without “crunching the numbers” in PIA.

When I go to the bank, I give them two printouts, one that shows the impact of the new IP as a standalone purchase and the second that shows the impact of this new IP on the total property portfolio. We have multiple trusts, multiple IPs, multiple loans, multiple offsets, etc.

We settle on our latest purchase this coming Wednesday. Even as self-funded retirees, we had no problem getting our approval for an IO loan, LVR of 80%, 3 years fixed at 4.29%, etc. The bank knows we treat IPs as a business and, we know if we put forward a good, strong business case, they will lend us the money.

Last year, we borrowed a massive amount of money and put into property. Next year, we will be selling our current PPOR. In 2019, we will be moving into one of our IPs and making it our PPOR.

We already know what the impact of each of these transactions will be on our cashflow (before and after tax), our property asset values, our loan portfolio, our net worth, ...

My background is in IT and I could set up something similar to PIA in Excel but why? I have better things to do with my previous time.

Why don’t you download PIA for a trial? From memory, the only two things one can’t do with the trial version is save your data/file and send reports to a printer.

Then you can decide if it is for you and, if so, get a licence key to switch it to the fully functional version.

 

Thanks so much for the detailed overview. I think this is exactly what we need as we continue accumulation phase. I didn’t realize you could do a trial, I’ll definitely do that.

 

This is my current portfolio cashflow spreadsheet I've been working on. It still needs refining and for new users it can be confusing as the expenses tab requires more fiddling.
Any feedback, corrections or suggestions are always welcome.
Eventually once I get it to where I want, I'll probably add graphs for net worth; incoming vs outgoing; gearing etc.

 

I am trying to build something similar to include 3 main asset type - resi, commercial and shares. Is anyone generous enough to share the latest version of their xls?

 

Hi,
Can i ask you a question re your spreadsheet? How did you get to the CF @ 9% IO after NG benefit number in cells H13?

 

Would you have a link please?

 

Give this one a crack mate. Everything you should need.

 

When I downloaded the file, my downloads folder froze. I think the file might be corrupt. Are you able to please re-create a new version of it and re-upload again as it looks exactly like what I am after as well.

Thanks so much!

 

jesus, no virus-ware i promise

DM your email, il send it to ya that way

 

Haha I'm sure there isn't...probably a link or two broken. I managed to delete it through administrator and then the folders started opening again...weird.

I'll PM you now.