Purchase Details:

Address:
Description:
Purchase Price:
MRTA:
Loan Principal:
Duration:
Monthly Repayment:
Upfront Payments
Equity (Diff between LPrin and PP)
Renovations and Furniture
Stamp Duty and Transaction Fees
Typical Year Calculation
Rental Per Month
Rental Months Per Year
Revenue
Less Operational Expenses:
Repair and Maintennace
Management Fees
Quit rent
Insurance
Miscellaneous Fees
Net Operating Income
Less Debt Service (P & I)
Cashflow Before Tax
Tax Expense
Cashflow After Tax

473000
400000
2000

2000
12
24000

0
24000
24000
0
215
-215

Years
Revenue
Less Operational Expenses
Net Operating Income
Less Debt Service
Cashflow Before Tax
Tax Expense
Cashflow After Tax
Less Upfront payments (Other Outflows)
Terminal Value (Other Inflows)
Total CashFlow
Rental Growth Per Year
Operational Expenses Growth Per Year
Inflation Rate
Cost of Equity (Required Return)
PV of Cash Flows
Sum of PV of Cash Flows

1
24000
0
24000
24000
0
215
-215
0

2
25200
0
25200
24000
1200
0
1200

3
26460
0
26460
24000
2460
0
2460

-215

1200

2460

4
5
27783 29172.15
0
0
27783 29172.15
24000
24000
3783 5172.15
0
0
3783 5172.15

3783

5172.15

1.05 If 5% = 1.05
1.03
1.1
-195.455 991.7355 1848.234
58372.78

Assumptions:
1. Rental, hence revenues grow by a fixed rate per year
2. Operational expenses grow by a fixed rate per year
3. House is assumed sold at the end of the loan tenure (15 years)
4. Terminal value needs to be adjusted for the sales tax and stamp duties
5. Tax expenses calculations is heavily simplified and needs adjusting

2583.84 3211.498

6
7
8
9
10
11
30630.76 32162.3 33770.41 35458.93 37231.88 39093.47
0
0
0
0
0
0
30630.76 32162.3 33770.41 35458.93 37231.88 39093.47
24000
24000
24000
24000
24000
24000
6630.758 8162.295 9770.41 11458.93 13231.88 15093.47
0
0
0
0
0
0
6630.758 8162.295 9770.41 11458.93 13231.88 15093.47

6630.758 8162.295

12
41048.14
0
41048.14
24000
17048.14
0
17048.14

13
43100.55
0
43100.55
24000
19100.55
0
19100.55

14
45255.58
0
45255.58
24000
21255.58
0
21255.58

9770.41 11458.93 13231.88 15093.47 17048.14 19100.55 21255.58

3742.89 4188.548 4557.968 4859.705 5101.461

5290.17 5432.064 5532.749 5597.258

15
47518.36
0
47518.36
24000
23518.36
0
23518.36
0
23518.36

5630.108