Investment details
$
$
Fees (legal, bank, agent)
$
Renovation
$
Furniture · all buying costs are paid from your own money
%
of the purchase price
%
$
mo
months empty per year
Running costs
$
%
$
$
%
of rent collected
%
of rent collected
Growth per year
%
running costs grow at the same rate
%
Results
Monthly cash flow
–
What’s left each month after the mortgage and every running cost; a negative number is what you top up from your own pocket.
Gross yield
–
A full year’s rent as a share of the purchase price, before any costs or empty months.
Net yield
–
What the flat earns after empty months and running costs, as a share of everything it cost (price plus buying costs), ignoring the mortgage.
Cash you put in
–
Your own money on day one: the deposit plus all buying costs.
Cash-on-cash return
–
This year’s cash flow as a percentage of the cash you put in.
Break-even rent
–
The monthly rent at which cash flow is exactly zero, so the flat pays for itself.
Leverage: the same flat with a different loan
Borrowing more means less of your own cash goes in but a bigger mortgage payment comes out of the rent; this shows what that does to your cash flow and to the return on your own money.
| Loan | Loan amount | Cash you put in | Monthly payment | Monthly cash flow | Cash-on-cash |
|---|
Every row uses the same interest rate and term; in practice banks often charge more for bigger loans.
10-year projection
How your position could develop if rent and prices grow at the rates you set, with running costs rising in step with rent.
| Year | Property value | Loan left | My equity | Cash flow so far | Total return | On cash put in |
|---|
- Property value: the purchase price grown by your yearly price growth.
- Loan left: what you still owe the bank after that year’s mortgage payments.
- My equity: the part of the flat you own outright: its value minus the loan left.
- Cash flow so far: all the monthly cash flow added up since you bought, including any top-ups as negatives.
- Total return: your equity plus cash flow so far, minus the cash you put in — what you’d be ahead if you could cash out at that value.
- On cash put in: the total return as a percentage of the cash you put in.
All results are before income tax and ignore the costs of selling (agent fees, taxes on the sale), which depend on your country and situation.