After , you will have built in equity.
You'll have left to pay off.
This rate is generally 2.5% p.a. for the first 40 years after construction for buildings constructed after 15 September 1987.
This is the rate your property value is assumed to grow at.
All results are expressed in today's dollars, and it is assumed that all expenses and income increase at the same rate as inflation. Property growth above inflation can be adjusted in the table above.
The loan interest rate you enter into the calculator is assumed to be the annual nominal rate of interest, compounded yearly.
The loan interest rate you enter into the calculator is assumed to remain the applicable loan interest rate over the entire term of the loan.
The term of loan you enter is taken to be a whole number of years.
All repayment periods are assumed to be of equal length.
One year is assumed to contain exactly 52 weeks, 26 fortnights, or 12 months. This implicitly assumes that a year has 364 days rather than the actual 365 or 366.
Ongoing ownership expenses are based on the inputs and frequency selected and adjusted to be equivalent to the annual values. The interest paid on the loan is the annual interest paid.
The amount available for investment is assumed to be used to offset the amount required for a loan (from considering upfront expenses and property purchase price)
Rental income is assumed to increase in line with inflation.
This calculator assumes the property is rented for the full year and rent is paid when due.
The depreciation rates for investment properties depend on the type of property and the commencement date of construction. By default, the building is assumed to be used for residential purposes and to have been constructed after 15 September 1987, on which a deprecation rate of 2.50%p.a applies.
The depreciation rate applies only to the building cost input. No other depreciation is considered in this calculator.
Your salary is assumed to increase at the assumed level of general wage inflation. Income tax is calculated by applying personal income tax rates plus the Medicare Levy (but not the Medicare Levy Surcharge) to the your projected taxable income in each projection year. The personal income tax rates used for the 2014/15, 2015/16, 2016/17 and 2017/18 projection years are the legislated tax rates for those years as at 1 July 2014. In each projected year subsequent to 2017/18, the personal income tax brackets (and Medicare Levy thresholds) are assumed to increase in line with the assumed level of general wage inflation, and the personal income tax rates are assumed to remain unchanged. The temporary budget repair levy of 2% on the part of a person's taxable income which exceeds $180,000 is assumed to apply for the 2014/15, 2015/16 and 2016/17 financial years. You are assumed to be an Australian resident for taxation purposes. In calculating the Medicare Levy, the individual income thresholds are assumed to apply, and the family income thresholds are assumed not to apply. No allowance is made for the Mature Age Worker Tax Offset.
The Medicare Levy is assumed to be 2% of taxable income for the 2014/15 tax year and subsequent years.
In each projection year, your entitlement for the Low Income Tax Offset (LITO) is estimated based on your taxable income. The rates and thresholds used to calculate LITO in the 2014/15 and 2015/16 projection years are assumed to be the legislated rates and thresholds for those years as at 1 July 2014. The maximum amount of LITO and the income threshold over which the LITO starts to reduce are assumed to increase in each year subsequent to 2015/16 in line with the assumed level of general wage inflation.
The rates and thresholds for stamp duty calculations are sourced from the different local State and Territory revenue office websites as per the table below.
Concessions such as the First Home Owners Grant are not included in these calculations.
Please read the information on assumptions as this contains important information on how the calculator works. The outputs from the calculator depend on the information you input and the assumptions below.
Annual expenses and income are calculated proportionately, to be consistent with the time period selected.
This calculator assumes the property is rented for the full year and rent is paid when due. This may not always be the case and you should consider how to fund any shortfall.
The default interest rate appearing in the calculator is based on the AMP Classic 2 Year Fixed Rate Loan for a loan amount of $150,000 for a 25 year term. See our website for more information.
The calculator does not take into account any interest rate discounts or future refinancing options which may be available, except to the extent that you enter this in the "Loan interest rate".
The calculator does not take into account any grants or any applicable bank fees, except to the extent you take it into account in the amounts you enter in the "Other upfront costs" section.
The output of the calculator is subject to the assumptions provided under the calculator.
Any information about tax mentioned is a general statement and should be used as a guide only. It does not constitute tax advice and is based on current tax laws and their interpretation. Your individual tax position may differ and you should seek independent professional advice on any taxation matters.
The calculator is intended to give a general indication of the cashflow impacts of you buying an investment property. AMP gives no guarantees that economic and property market conditions and your personal circumstances will actually turn out to be in line with the assumptions or the outputs from the calculator.
This calculator considers the expenses and income for a period of one year only, and no allowance is made for wage inflation, or investment income on capital. You should consider the potential longer term impact of these factors when reviewing the affordability of an investment property over a horizon longer than 1 year.
The outputs from this calculator do not constitute an offer of credit or a quote.
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