INVESTMENT PROPERTY CALCULATOR WITH MULTIPLE ILLUSTRATIONS Presentation and Overview of Features, Calculations and Results Produced

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1 About this Investment Property - Clip 1 Complex calculations determine the surplus cash produced by the selected property The base price of the property listed on the site assists with the property growth value over time Stamp duty shown is based on land or completed product as per the listing on the site All the rents produced by the property have been added together and shown as a total Expenses, Body Corporate fees if and as applicable, property management fees, insurances and council rates have been totaled and shown as a weekly amount for direct comparison

2 Rental Yield and Annual Growth - Clip 2 The property produces a gross rental yield calculated by using the annual total rental and dividing by the value of the property and multiplied by 100 Properties are positioned in high growth areas. The annual growth rate has been provided by researching the immediate area and surrounding areas. In most cases the rate is based on a 5-year average A popular method to find the number of years for the property to double in value is the rule of 72. Calculation is 72 divided by growth rate

3 Profit & Loss Calculations - Clip 3 For profit and loss calculations, 100% of the purchase price and settlement expenses are shown The bank rate shown is interest only and often the best fixed rate available at the time 12-months loan interest shown for inclusion in deductions The loan repayment is shown as weekly for deductibility An estimation of the legal expenses is shown here Annual depreciation is determined using BMT & investment expenses calculated All deductions are totaled and the annual net loss or gain is calculated

4 Single Year Cash-flow Before & After - Clip 4 The income currently received by the primary borrower is shown first The income currently received by the secondary borrower is shown second The income taxes currently paid by both earners are shown here Based on the income split is an ownership recommendation The updated income taxes are shown taking into account any MTR changes as applicable Any increases or decreases in taxes as a result of MTR changes effect negative/positive gearing will be shown here

5 Effect of this Property on Owners Tax - Clip 5 Here we show the calculated result of tax savings as a result of applying the negative gearing taxation offset that investors are entitled to When NRAS applies, the calculator includes the RTO tax incentive together with the state or territory government tax free cash payment that applies to owners of NRAS approved properties in Australia Taking all the available tax incentives and tax offsets, the calculator determines an indicative amount that will be reduced from the current tax paid by owners of investment property

6 Effect of this property on Owners to be Debtfree - Clip 6 A link to a spreadsheet allows homeowners to enter all their debts to be paid out from the surplus cash on this property After entering the debts and loans, the total amount to be paid out is shown nere We also show the current monthly total of repayments across all loans and debts To make it easy to see the outcome, we ve included an Upshot section After taking all debts and loans into consideration, database calculations return the number of years it can take for the properties surplus cash, when applied to all debts, to make buyers debt free!

7 Debt Table for all debts and loans to be paid out - Clip 6 table This is the spreadsheet/table for any and all debts including credit cards, car loans, the home loan and the loan for the new investment property are entered. The calculator uses the debtsnowball method. The property selected provides an annual surplus which is used as the snowball amount. The snownball amount is added to the minimum repayment. Select debts and loans you wish to include, enter all balances together with their minimum repayment amounts. The calculator then sorts by the Divided Answer and allocates the priority debts to be paid first.

8 Positive Outcomes from buying this Property - Clip 7 Using the new property & the total deductions, buyer incomes are adjusted for tax purposes The property is assumed to increase in value over 10-years as calculated by the growth rate Using property surplus helps repay your home loan sooner. We show you how much interest you could save. Use property surplus to repay all your debts. We calculate the total you will pay and when you can expect to be debt free. When debt free, we calculate and display the positive effect when continuing with the same monthly amount and invested in anything that provides a return. Over the remaining term the amount is substantial!

9 Effect of this property in a SMSF - Clip 8 Maximum borrowing inside a SMSF is 80%. Calculator takes 20% off the purchase price. The bank rate shown is interest only and sourced from selected banks offering SMSF loans. The calculator determines the interest only repayment amount Both market and discounted NRAS rental incomes displayed NRAS incentives from the ATO and State/Territory will be shown here Powerful calculations determine the amount of surplus cash available from the property An estimation of the properties value inside the SMSF over 10- years will be shown here