Data Entry Check List
The Data Entry Check List provides an intuitive interface for
entering data about an investment property, how it is to be
financed, how tax credits are to be calculated, and how these
variables are to change over time. This would normally be the first
step in analysing any prospective property as it helps construct an
Investment Analysis spreadsheet with all of the appropriate
starting values.
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Spreadsheets (4)
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Investment Analysis
The Investment Analysis Spreadsheet is the main focus of PIA and
of this Quick-Start Guide. You will find that you spend most of your
time within this spreadsheet as it gives you instant answers on how
much a prospective investment property is likely to cost you after
tax and what rate of return you might anticipate for the data you
have entered.
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Cash flow projections (40 years)
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Internal rate of return
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Before-tax & after-tax cash flows
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Tax benefits
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Variety of possible loan types
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Calculate personal investment & borrowing capacities
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Include a portfolio of properties
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- Home Loan Analysis
The
Home Loan Analysis Spreadsheet is used to describe the status
of your home loan (i.e. how much is still owing and what your
repayments are). You can use it to analyse ways of repaying your
home loan faster (e.g. by way of additional payments, fortnightly
payments or a credit line) or even to consolidate and refinance
several non-deductible loans into one.
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- Wealth Builder
The
Wealth Builder Spreadsheet helps you interactively plan a
portfolio of investment properties based on projected multiples of
the property under review in the Investment Analysis
Spreadsheet. At each step (that is, each year) you can see
whether you would have the necessary funds (cash savings) and
whether the banks would be likely to lend you the finance
(loan/value ratio and debt /service ratio). This spreadsheet
integrates data from the investment property under review, your home
and any existing investment property portfolio.
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- Linked Loan Analysis
The
Linked Loans Spreadsheet allows you to explore methods of
repaying non-deductible loans faster using surplus cash flows from
an investment property. Where a credit line is the preferred method
for repaying a home loan, the Linked Loans Spreadsheet
also allows you to take account of the after-tax cost of an
investment property, though this can also be explored in the
Wealth Builder.
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Reports
- Investment report The report begins with the summary
report of the variables displayed on the spreadsheet, then gives a
detailed explanation and breakdown of all input variables displayed
on the spreadsheet. This report also includes details of projected
internal rate of return (IRR), tax benefits and investment capacity.
- Investment report (descriptive) A report which
details all of the information relevant to the specific investment
along with a detailed description of the input variables and what
they mean.
- Cash flow analysis report The first part of the report gives
a tabulated breakdown of all the items that contribute to the cash
flow in the first year of the investment. The later parts of the
report show the cash flow projections over time.
- Capital gains tax report This report outlines CGT legislation and shows how the
capital gains tax liability (for Australia) would be calculated if
the investment property were to be sold at the end of the projection
period
- Home loan report A report which
provides the details and annual break-down of an investor's home
loan, showing the term of the loan and the total interest paid.
- Wealth builder report A report showing the accumulation of investment
properties specified in the Wealth Builder spreadsheet. The
report includes the spreadsheet, projections of property values,
income and expenditure, as well as graphics of Investment Equity &
Net Worth, Loan to Value & Debt Service Ratios and After-Tax Cash
Flows.
- Linked loan report a report describing the interest and repayment schedule for both the
home and investment loans. This is a detailed report that includes
the projections from the Linked Loans spreadsheet, together with
detailed analysis of projected loan payments and balances, equity,
and tax benefits
- Custom report
Allows you to collate a report which optionally includes various
reports and graphics screens
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Graphics screens
- Who pays? Pie chart showing the
relative contribution
 of
the investor, the tenant and the taxman in meeting the
bills for the specific investment property.
- Property value & debt Chart of
the increasing property value compared to the level of debt on the
investment property.
- Before- and after-tax cash flows
Chart showing the cash flows (and break-even points) for the
investment property before and after tax is taken into account.
- Before- and after-sale rates of
return Chart showing the internal rates of return for the
investment projected over a range of years.
- Property and bank returns
comparison Chart which compares the return from the investment
property to that of the same monies invested at a specified bank
interest.
- Investment loan repayments
Chart showing annual interest and repayments on the investment loan.
- Equity & investment Chart
comparing the rising equity in the investment with the total monies
invested over time.
- Tax liabilities Chart comparing
projected tax liabilities with and without the acquisition of the
investment property.
- Home loan payments Chart
showing the annual interest and repayments on a home loan.
- Loan balances Chart comparing
the home and investment loan balances over time.
- Combined LVR Chart showing the
loan to value ratio for home and investment properties over time.
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Property Investment Calculators
- Capital growth Calculates an
average rate of capital growth given the value of a property at two
points in time and the number of years between.
- Inflation rate Calculates an
average inflation rate based on the value of any item at two points
in time.
- Income tax Calculates the tax
liability and medicare levy for any specified taxable income using
the tax scales set within the program's settings menu.
- Stamp duty Calculates the stamp
duty on a property based on the government stamp duty scales as set
within the program's settings menu
- Sales commission Calculates the
sales commission on a property based on the scales set within the
program's settings menu.
- Capital gains tax A facility
for estimating capital gains tax liability on the sale of an
investment property, catering for capital improvements and the
write-back of any depreciation claims.
- Land tax
A calculator which allows you to calculate land tax liabilities
for any State in Australia.
- Borrowing
capacity This calculator provides a means of working
 out
your borrowing capacity. The assumption is that your ability to
borrow funds is limited by either or both of your Loan Value Ratio
(LVR) or your Debt Service Ratio (DSR).
- Loan payments A financial
calculator is provided for working out the repayments on any P&I
loan. It is also possible to work out the new term of the loan if
either the frequency of payments is changed (e.g. paying fortnightly
rather than monthly) or the payments are increased.
- Loan Consolidation A facility
for examining the revised payments and after-tax cost of combining
existing loans and adding that for an investment property.
- Loan Eligibility A calculator
for working out whether an investor meets a financial institutions
criteria to qualify for a property investment loan.
- Retirement Reckoner A facility
for working out current net worth of investment assets and the
number of years needed to achieve retirement goals.
- Superannuation
This enables you to calculate the total amount
accumulated in a superannuation fund, based on the parameters you
enter into the calculator. PIA then works out the total
superannuation (both nominal and adjusted to today's dollars) that
accumulates over a specified period for the specified parameter
values
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