Emporio Investment Report Test

CASH FLOW ANALYSIS
Rental Income – 50 weeks occupancy $510.00
(Rental Income – Under NRAS $381.99)
Less Allowable Deductions
Cash Deductions
Loan Interest (Fixed) @ 6.0%
Body Corporate
Council & Water Rates
Property Management @ 8.5% (NRAS 11%) + (GST) $105.60 P&P
Letting Fee
Repairs & Maintenance
Allowable Cash Deductions
Non Cash Deductions
Depreciation - Building @ 2.5%
Depreciation - Fixtures & Fittings
Total Allowable Deductions
Taxable Income of $80k - $180k post net rental result
NRAS Tax-Free Incentive $10,280 per dwelling/key
Tax Return (Based on 38.5% marginal tax rate)
AFTER-TAX CASH FLOW surplus/(deficiency)
Per Annum
AFTER-TAX CASH FLOW surplus/(deficiency)
Per Week
Projected year end Property Value
Acquisition: $489,500
Year 1
$25,500
$26,904
$4,265
$4,000
$2,490
$510
$200
$38,368
$6,470
$8,709
$53,547
$10,798
($2,070)
($39.81)
Year 5
$30,409
$26,904
$4,800
$4,502
$2,949
$608
$225
$39,988
$6,470
$2,630
$49,088
$7,191
($2,387)
($45.91)
The following assumptions have been considered when calculating the projected cash flow models.
MARKET RENT NRAS
Year 10
$37,895
$26,904
$5,565
$5,219
$3,649
$758
$261
$42,355
$6,470
$639
$49,464
$4,454
($6)
($0.11)
Year 1
$19,100
$26,904
$4,265
$4,000
$2,417
$2,000
$200
$39,785
$6,470
$8,709
$54,964
$20,560
$13,808
+$13,682
+$263.12
Stage One — Actual photo
Property Investment Analysis TYPE 5
Year 5
$22,777
$26,904
$4,800
$4,502
$2,862
$2,051
$225
$41,344
$6,470
$2,630
$50,444
$24,991
$10,652
+$17,076
+$328.38
Year 10
$28,384
$26,904
$5,565
$5,219
$3,540
$2,121
$261
$43,610
$6,470
$639
$50,719
$31,895
$8,599
+$25,268
+$485.93
$514,000 $624,700 $797,300 $514,000 $624,700 $797,300
Assumptions: Rental growth of 4.5%. Expense inflation of 3% per annum. Loan interest (fixed) of 6.0%. We have assumed that income tax rates
applicable to the 2012/13 financial year will not change over the period of the forecast. Property Holder has $100,000 of other taxable income. 5%
Capital Growth Rate.
This report has been prepared for the general information of investors by using assumptions and estimates provided by the vendor to facilitate
explanation. Vincents are not economists and as such do not make any representations in relation to the capital or rental growth rate assumptions
relied upon. It is made without consideration of the specific details of the investors’ financial situation. Financial institutions lending criteria
may vary in relation to differing properties and potential investors’ should discuss their situation with a financial institution. Vincents Chartered
Accountants does not accept any liability for the reliance placed on this information including results of any actions taken or not taken on the basis
of this analysis. No information or recommendation either express or implied should be acted on without obtaining specific advice from your
professional advisor.