Investment Property Report for a Sydney-Based Property - 2200 Words

Investment Property Report for a Sydney-Based Property (Other (Not Listed) Sample) Content: 227457050800Investment Report00Investment Report43815189865002207565946150047688508509030th August 20150030th August 2015DESCRIPTIVE PROPERTY INVESTMENT ANALYSIS9461531750Client: (Name)00Client: (Name)95098193142Consultant:00Consultant:10241373736Property: Sydney, Australia00Property: Sydney, Australia100025234315Description: Investment property (2 residential units, 1 office (large), 2 small offices00Description: Investment property (2 residential units, 1 office (large), 2 small offices102412122580Status: Under occupancy 00Status: Under occupancy936758255Current rent (annual): AU$169,00000Current rent (annual): AU$169,0003890513450491Property value 3,238,387 3,238,387$1,500,00000Property value 3,238,387 3,238,387$1,500,0003840480271475 Ten (10) year projected results 00 Ten (10) year projected results 1828800446100Property value $1,500,00000Property value $1,500,0001821485271475As sumptions00Assumptions438912568450247253922758SUMMARY00SUMMARY3898900274320Annual after-tax return126,633 00Annual after-tax return126,633 4222751445489PERFPRMANCE PROJECTIONS00PERFPRMANCE PROJECTIONS39281101036320Annual after-tax return 00Annual after-tax return 3927475730250Selling cost CGT 130,85900Selling cost CGT 130,8593920490883920Equity 1,417,17800Equity 1,417,1783891280579120 IF SOLD 00 IF SOLD 3906825426720Net Present Value 377,62900Net Present Value 377,6293891585121920Equity 2,038,38300Equity 2,038,38318519651035050Taxable income -$464,77500Taxable income -$464,7751851965882650Interest rate 4.08% pa00Interest rate 4.08% pa1844345730250Inflation rate 5.5%00Inflation rate 5.5%1836725577850Gross rate 00Gross rate 1829105425450Net yield 10.9 85%00Net yield 10.985%1829105273050Gross yield 7.6%00Gross yield 7.6%1829105120650Investment $300,00000Investment $300,000102235170485Investment Analysis 10-year projected performance00Investment Analysis 10-year projected performance292101720850102413384759End of year 2015 Yr 1 Yr2 Yr5 Yr1000End of year 2015 Yr 1 Yr2 Yr5 Yr10876302459990Total deductions00Total deductions804672598725Tax credit (single) - - - - -00Tax credit (single) - - - - -91110291846 0Rate of Return (IRR) 37 -69 -25 23 37 00Rate of Return (IRR) 37 -69 -25 23 37 885952771775After-tax cashflow -300,000 -224,992 -142,320.3 -34,111.2 126,633.200After-tax cashflow -300,000 -224,992 -142,320.3 -34,111.2 126,633.2774702000885Building depreciation 31,500 31,500 31,500 31,500 31,50000Building depreciation 31,500 31,500 31,500 31,500 31,500879601861185Non-cash deductions 00Non-cash deductions 90500978535Inflation 5.5 5.5 5.5 5.5 5.500Inflation 5.5 5.5 5.5 5.5 5.583820822325Capital growth 8 8 8 8 800Capital growth 8 8 8 8 8793751263015Deductions00Deductions800101412875Interest (I/O) 69,413.6 69,413.6 69,413.6 69,413.6 69,413.6 00Interest (I/O) 69,413.6 69,413.6 69,413.6 69,413.6 69,413.6 784101706880Pre-tax cashflow -300,000 -224,992 -142,320.3 -34,111.2 126,633.200Pre-tax cashflow -300,000 -224,992 -142,320.3 -34,111.2 126,633.285090368935Investment 300,000 - - - - 00Investment 300,000 - - - - 102413214478Purchase c osts 68,319 - - - -Y00Purchase costs 68,319 - - - -Y10193058420Property value 1,500,000 1,620,000 1,749,600 2,203,992 3,238,38700Property value 1,500,000 1,620,000 1,749,600 2,203,992 3,238,3878572546990Loaned amount 1,200,000 1,200,000 1,200,000 1,200,000 1,200,00000Loaned amount 1,200,000 1,200,000 1,200,000 1,200,000 1,200,00085725193675Equity 300,000 420,000 549,600 1,003,992 2,038,38300Equity 300,000 420,000 549,600 1,003,992 2,038,38377638165004Gross Annual rent 164,775 173,838 183,399 215,354 281,46 000Gross Annual rent 164,775 173,838 183,399 215,354 281,46087463133957Rental expenses 3,000 3,180 3,787.4 5,068.4 00Rental expenses 3,000 3,180 3,787.4 5,068.477470382905Loan cost 5,881 1,000 1,000 1,000 000Loan cost 5,881 1,000 1,000 1,000 077470236220Fittings depreciation 16,000 17,280 18,662 23,509 34,54300Fittings depreciation 16,000 17,280 18,662 23,509 34,54394615205105Pre-tax equivalent 8.24 00Pre-tax equivalent 8.24Investment Disclaimer: The performance projections above are illustrative of expected outcomes computed from input values, and other model-based assumptions. Therefore, the figures can be varied from the actual performance, and are in no way intended to guarantee future performance. Though provided in good faith, ità ¢Ã¢â€š ¬s also give on the basis that no person will through full or partial implementation of the information hold the consultant, his affiliates or sponsor firm(s) responsible for its use or misuse.Further Notes Attaching to the Spreadsheet ItemsPROPERTY VALUEThe property/market value refers to the gross worth of the property. It therefore presents an estimate of how much it could sell in the mainstream market. The property book value on the other hand refers to sum total of the payment made for the property and any immediate renovation costs associated with purchase of the property. AU$ Property price 1,500,000 Renovation costs 0 Total book value 1,500,000 Property market value 1,500,000 Purchase costsThese are costs associated with the purchase and transfer of the property from the seller to the buyer. At norm, it includes a solicitorà ¢Ã¢â€š ¬ s conveyance fee, mortgage registration fees and stamp duty due on the property. Care should however be exercised that these values are likely to change from one financial year to another. Therefore, consult your property advisor for updated rates if acquiring the property in other years other than 2014/15. AU$ Mortgage Registration Fee 110 Transfer Fee 219 Stamp duty 67,990 Total Purchase Costs 68,319 INVESTMENT vs. LOANSProperty investment often requires an initial outlay of monies tied to the property purchase. While the initial outlay is paid up-front, the balance is often paid in manageable periodic installments. Optionally, you may seek loan funding from your preferred financier in completing the property cost balance. Contextually, this report assumes your ability to pay 20% of the purchase cost, while the balance is paid via a loan arrangement. Consequently, the total cost of the property will be computed as below. Investment Loan Total cost AU$ AU$ AU$ Property costs 300,0 00 1,200,000 1,500,000 Renovation cost 0 0 0 Purchase costs 0 68,319 68,319 Furniture other fittings 0 0 0 Loan costs (@4.08% pa) 48,573 48,573 Total 300,000 1,316,892 1,616,892 CAPITAL GROWTH AND INFLATION RATESThe rate of capital growth refers to the investorà ¢Ã¢â€š ¬s anticipated annually compounded increase in property value from purchase. However, with the NWS price index predicted to grow at between 8 and 12 per cent, astute investment savvy requires that the minimum or an averaged prediction value is assumed. F... Investment Property Report for a Sydney-Based Property - 2200 Words Investment Property Report for a Sydney-Based Property (Other (Not Listed) Sample) Content: 227457050800Investment Report00Investment Report43815189865002207565946150047688508509030th August 20150030th August 2015DESCRIPTIVE PROPERTY INVESTMENT ANALYSIS9461531750Client: (Name)00Client: (Name)95098193142Consultant:00Consultant:10241373736Property: Sydney, Australia00Property: Sydney, Australia100025234315Description: Investment property (2 residential units, 1 office (large), 2 small offices00Description: Investment property (2 residential units, 1 office (large), 2 small offices102412122580Status: Under occupancy 00Status: Under occupancy936758255Current rent (annual): AU$169,00000Current rent (annual): AU$169,0003890513450491Property value 3,238,387 3,238,387$1,500,00000Property value 3,238,387 3,238,387$1,500,0003840480271475 Ten (10) year projected results 00 Ten (10) year projected results 1828800446100Property value $1,500,00000Property value $1,500,0001821485271475As sumptions00Assumptions438912568450247253922758SUMMARY00SUMMARY3898900274320Annual after-tax return126,633 00Annual after-tax return126,633 4222751445489PERFPRMANCE PROJECTIONS00PERFPRMANCE PROJECTIONS39281101036320Annual after-tax return 00Annual after-tax return 3927475730250Selling cost CGT 130,85900Selling cost CGT 130,8593920490883920Equity 1,417,17800Equity 1,417,1783891280579120 IF SOLD 00 IF SOLD 3906825426720Net Present Value 377,62900Net Present Value 377,6293891585121920Equity 2,038,38300Equity 2,038,38318519651035050Taxable income -$464,77500Taxable income -$464,7751851965882650Interest rate 4.08% pa00Interest rate 4.08% pa1844345730250Inflation rate 5.5%00Inflation rate 5.5%1836725577850Gross rate 00Gross rate 1829105425450Net yield 10.9 85%00Net yield 10.985%1829105273050Gross yield 7.6%00Gross yield 7.6%1829105120650Investment $300,00000Investment $300,000102235170485Investment Analysis 10-year projected performance00Investment Analysis 10-year projected performance292101720850102413384759End of year 2015 Yr 1 Yr2 Yr5 Yr1000End of year 2015 Yr 1 Yr2 Yr5 Yr10876302459990Total deductions00Total deductions804672598725Tax credit (single) - - - - -00Tax credit (single) - - - - -91110291846 0Rate of Return (IRR) 37 -69 -25 23 37 00Rate of Return (IRR) 37 -69 -25 23 37 885952771775After-tax cashflow -300,000 -224,992 -142,320.3 -34,111.2 126,633.200After-tax cashflow -300,000 -224,992 -142,320.3 -34,111.2 126,633.2774702000885Building depreciation 31,500 31,500 31,500 31,500 31,50000Building depreciation 31,500 31,500 31,500 31,500 31,500879601861185Non-cash deductions 00Non-cash deductions 90500978535Inflation 5.5 5.5 5.5 5.5 5.500Inflation 5.5 5.5 5.5 5.5 5.583820822325Capital growth 8 8 8 8 800Capital growth 8 8 8 8 8793751263015Deductions00Deductions800101412875Interest (I/O) 69,413.6 69,413.6 69,413.6 69,413.6 69,413.6 00Interest (I/O) 69,413.6 69,413.6 69,413.6 69,413.6 69,413.6 784101706880Pre-tax cashflow -300,000 -224,992 -142,320.3 -34,111.2 126,633.200Pre-tax cashflow -300,000 -224,992 -142,320.3 -34,111.2 126,633.285090368935Investment 300,000 - - - - 00Investment 300,000 - - - - 102413214478Purchase c osts 68,319 - - - -Y00Purchase costs 68,319 - - - -Y10193058420Property value 1,500,000 1,620,000 1,749,600 2,203,992 3,238,38700Property value 1,500,000 1,620,000 1,749,600 2,203,992 3,238,3878572546990Loaned amount 1,200,000 1,200,000 1,200,000 1,200,000 1,200,00000Loaned amount 1,200,000 1,200,000 1,200,000 1,200,000 1,200,00085725193675Equity 300,000 420,000 549,600 1,003,992 2,038,38300Equity 300,000 420,000 549,600 1,003,992 2,038,38377638165004Gross Annual rent 164,775 173,838 183,399 215,354 281,46 000Gross Annual rent 164,775 173,838 183,399 215,354 281,46087463133957Rental expenses 3,000 3,180 3,787.4 5,068.4 00Rental expenses 3,000 3,180 3,787.4 5,068.477470382905Loan cost 5,881 1,000 1,000 1,000 000Loan cost 5,881 1,000 1,000 1,000 077470236220Fittings depreciation 16,000 17,280 18,662 23,509 34,54300Fittings depreciation 16,000 17,280 18,662 23,509 34,54394615205105Pre-tax equivalent 8.24 00Pre-tax equivalent 8.24Investment Disclaimer: The performance projections above are illustrative of expected outcomes computed from input values, and other model-based assumptions. Therefore, the figures can be varied from the actual performance, and are in no way intended to guarantee future performance. Though provided in good faith, ità ¢Ã¢â€š ¬s also give on the basis that no person will through full or partial implementation of the information hold the consultant, his affiliates or sponsor firm(s) responsible for its use or misuse.Further Notes Attaching to the Spreadsheet ItemsPROPERTY VALUEThe property/market value refers to the gross worth of the property. It therefore presents an estimate of how much it could sell in the mainstream market. The property book value on the other hand refers to sum total of the payment made for the property and any immediate renovation costs associated with purchase of the property. AU$ Property price 1,500,000 Renovation costs 0 Total book value 1,500,000 Property market value 1,500,000 Purchase costsThese are costs associated with the purchase and transfer of the property from the seller to the buyer. At norm, it includes a solicitorà ¢Ã¢â€š ¬ s conveyance fee, mortgage registration fees and stamp duty due on the property. Care should however be exercised that these values are likely to change from one financial year to another. Therefore, consult your property advisor for updated rates if acquiring the property in other years other than 2014/15. AU$ Mortgage Registration Fee 110 Transfer Fee 219 Stamp duty 67,990 Total Purchase Costs 68,319 INVESTMENT vs. LOANSProperty investment often requires an initial outlay of monies tied to the property purchase. While the initial outlay is paid up-front, the balance is often paid in manageable periodic installments. Optionally, you may seek loan funding from your preferred financier in completing the property cost balance. Contextually, this report assumes your ability to pay 20% of the purchase cost, while the balance is paid via a loan arrangement. Consequently, the total cost of the property will be computed as below. Investment Loan Total cost AU$ AU$ AU$ Property costs 300,0 00 1,200,000 1,500,000 Renovation cost 0 0 0 Purchase costs 0 68,319 68,319 Furniture other fittings 0 0 0 Loan costs (@4.08% pa) 48,573 48,573 Total 300,000 1,316,892 1,616,892 CAPITAL GROWTH AND INFLATION RATESThe rate of capital growth refers to the investorà ¢Ã¢â€š ¬s anticipated annually compounded increase in property value from purchase. However, with the NWS price index predicted to grow at between 8 and 12 per cent, astute investment savvy requires that the minimum or an averaged prediction value is assumed. F...