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Rental yield, repayments, weekly cash flow before tax, and the cash you need to get started, from figures you supply. Every result shows the formula behind it.
| Figure | Formula | With your numbers | Result |
|---|---|---|---|
| Gross yield | (weekly rent × 52) ÷ purchase price × 100 | ($600/wk × 52) ÷ $650,000 × 100 | 4.8% |
| Net yield | ((weekly rent − weekly holding costs) × 52) ÷ purchase price × 100 | ($31,200/yr − $7,800/yr) ÷ $650,000 × 100 | 3.6% |
| Deposit | purchase price × deposit % | $650,000 × 20% | $130,000 |
| Loan amount | purchase price − deposit | $650,000 − $130,000 | $520,000 |
| Monthly repayment | P × annual rate ÷ 12: interest only, so no principal is repaid | $520,000 × 6% ÷ 12 | $2,600/mo |
| Weekly cash flow | weekly rent − weekly holding costs − weekly repayment | $600/wk − $150/wk − $600/wk | -$150/wk |
| Cash needed to start | deposit + upfront buying costs | $130,000 + $35,000 | $165,000 |
This page runs the same calculation as Scenarios inside Virtual Buyers Agent, not a copy of it, with the same repayment choice: interest only unless you switch to principal and interest. It uses only the values you typed on this page.
Gross yield is annual rent divided by the purchase price. Net yield subtracts the holding costs you enter first. The gap between the two is the cost of owning the property, expressed as a percentage.
The repayment is on the loan implied by your deposit percentage. It starts as interest only (one month of interest, with no principal repaid) and you can switch it to principal and interest, which uses the standard amortisation formula over the loan term. Weekly cash flow is rent, less holding costs, less that repayment.
Cash to get started is your deposit plus the upfront buying costs you enter: duty, legals, inspections, loan fees. It is the amount you need available before settlement, and it is usually the constraint that decides what you can buy.
It applies no tax of any kind. There is no deduction, no offset, no refund and no negative-gearing outcome in any figure on this page, and none should be inferred from one. What a property does to your tax position depends on your income and your circumstances, and only a registered tax agent can tell you.
It excludes land tax, lenders mortgage insurance, and any cost you do not type in yourself. It does not assess serviceability. Whether a lender will actually approve the loan is a question for the lender.
Nothing is prefilled from a market average. There is no vacancy allowance, no management fee percentage and no maintenance reserve applied on your behalf, because we have no sourced figure for any of them. If you want one, put it in the holding-cost field.
A calculator tells you whether the arithmetic works on the numbers you already believe. It cannot tell you whether those numbers are right, and the inputs are where property decisions usually go wrong: a rent that was advertised rather than achieved, a strata levy read from the listing rather than the disclosure statement, an insurance figure that was a guess.
The work that follows is evidencing each input, then checking the things arithmetic cannot see: the contract, the building and pest report, the zoning, the strata records. Virtual Buyers Agent is a guided workspace for exactly that - Summary, Finances, Location, Documents and Offer, with the source and limits of every figure shown.
Four things, from the numbers you type: gross and net rental yield, the repayment on the loan (interest only, or principal and interest if you choose), weekly cash flow before tax, and the cash you need up front. The formula behind each figure is shown next to it.
No. It calculates no deduction, no offset and no refund, and the cash-flow figure is before tax of any kind. Working out what a property does to your tax position depends on your own circumstances. Ask a registered tax agent.
Land tax, lenders mortgage insurance, vacancy, and anything you do not enter yourself. It also does not assess whether a lender will approve the loan. Nothing is prefilled from a market average.
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A calculator checks the arithmetic. Virtual Buyers Agent is a guided workspace for checking the rest - Summary, Finances, Location, Documents and Offer - with the source, assumptions and limits shown on every figure.
General information only: not financial, legal, tax, or investment advice. Virtual Buyers Agent does not hold an AFSL or a real estate licence. Check your circumstances with appropriately licensed professionals before acting.