Sample Cash Flow for Non Resident Investors

Non Resident Investor buying a property in Australia – Sample Cash Flow

The following projections are based on a non resident investor purchasing a typical 1 bedroom plus study apartment in our North Melbourne project (sold in 2009), priced at AUD$450,000.

Assumptions:
Non Resident Investor, with no other income in Australia.
Investor will borrow 80% of the property cost ($360,000)
Initial Capital required from Investor $95,070
Capital growth 6%pa, Inflation 4%pa, mortgage interest 6.25%pa Interest Only Loan.

Projected cash flow in Year 1

Cash In:
Gross Rent                      $22,932

Cash Deductions:
Interest                          $22,500
Property expenses             $6,070
Pre Tax Cash Flow            -$5,638

Non Cash Deductions:
Depreciation                     $11,908
Loan Costs                           $554
Total Deductions               $41,032
Income tax Credits                   $0

After Tax cash Flow            -$5,638  Ie your net cost in year one, or $108 per week.

Who has paid for your property holding costs in year one:
Your tenant has contributed 80% of the holding cost of Your Property
You have contributed 20% of the holding cost of Your Property


If Sold after 5 Years:

Total Cash Invested:                             $116,182 (Includes the initial capital plus per annum cost for the first 5 years)
Property Value:                                     $602,202
Selling costs & Capital Gains Tax around  $22,000

Your equity once sold and loan repaid      $220,000  (ie your cash in hand after tax)

Your cash investment of $116,182 over the 5 years has grown to $220,000, so a return of $103,818.  Not a bad return given the security that property investment has traditionally offered over other forms of investment.

If you would like a copy of the full projections and assumptions for the above cash flow model please send us an enquiry , with your request and we will forward a pdf file with a comprehensive report illustrating the above projections.

Disclaimer: Please note that the projections listed above simply illustrate the outcome calculated from the input values and the assumptions contained in the model.  Hence the figures can be varied as required and are in no way intended to be a guarantee of future performance.