| 5 years cash flow and investor return: 1 bedroom
apartment
Assumptions: Average sale price: $295,000, 85% bank loan,
3% rental growth as from year 4
|
|
| Year |
|
2003/2004 |
2004/2005 |
2005/2006 |
2006/2007 |
2007/2008 |
|
| Deposit |
15% |
-$44,250 |
|
| legal/duty |
5% |
-$14,750 |
|
| Total equity |
|
-$59,000 |
|
|
|
| Bank loan |
|
$250,750 |
|
|
|
| net annual gross rental |
|
| |
$310 |
$16,120 |
|
$16.120 |
|
$16,120 |
|
$16.660 |
|
$17,100 |
|
|
| annual
interest payment assuming 5 yrs fixed rate |
| |
6.25% |
-$15,671 |
|
-$15,671 |
|
-$15,671 |
|
-$15,671 |
|
-$15,671 |
| |
|
|
|
|
| Plant & equip. depreciation |
-$5,453 |
|
-$4,226 |
|
-$3,349 |
|
-$2,707 |
|
-$2,227 |
| Building write off |
-$3,200 |
|
-$3,200 |
|
-$3,200 |
|
-$3,200 |
|
-$3,200 |
| water/council rate |
-$800 |
|
-$810 |
|
-$820 |
|
-$830 |
|
-$840 |
| Owners corp. levies |
-$2,000 |
|
-$2,200 |
|
-$2,250 |
|
-$2,300 |
|
-$2,350 |
| Taxable income |
-$11,004 |
|
-$9,987 |
|
-$9,170 |
|
-$8,108 |
|
-$7,188 |
|
|
| Tax refund at 48.50% |
-$5,336 |
|
-$4,843 |
|
-$4,447 |
|
-$3,932 |
|
-$3,486 |
|
|
| After tax cash position |
$2,985 |
|
$2,282 |
|
$1,826 |
|
$1,731 |
|
$1,725 |
|
|
| Property capital gain estimate (based
on 3% p.a) |
| |
|
$303,850 |
|
$312,966 |
|
$322,354 |
|
$332,025 |
|
$341,986 |
|
|
|
