Hi everyone
Just wanting to check my reponses for qstn 21 as I have done these calculations 3 times with 3 responses!
GRR = 12%
RoI = 4.86%
CoCR = 13.9%
GoER = 23.3%
NPP = 33.9%
I used GST incl figures and didn't use depreciation. For those doing the assignment questions as we work through the webinars, I would be interested in your comments!
Hi Chris, I got the following results:
GRR = 12%
RoI = 4.775%
CoCR = 15.91%
GoER = 23.33%
NPP = 39.25%
My calculations are excluding gst. We are assuming we are registered for gst so any gst you collect on the rent is not your income it goes to the ATO and any gst you paid on the purchase price you get back from the ATO so it is not an expense. The CoCr is the cash you receive in your pocket and that would not include the gst portion of the rent. Also the NPP is NET Profit Percentage. If anyone can confirm this is correct? If not I will need to redo my calculations.
Many thanks Alison
I wasn't sure what to do with the GST, many thanks for the clarification. Redoing the calculations, I agree that it is the Net Profit Percentage, where I also got your answer.
Cheers,
I was also unsure as to the GST component. I have included GST because all the webinar examples and discussions have invluded GST. I just added a note mentioning that all were GST inclusive. I also didn't use depreciation. (I thought that maybe the aim is to show that you have an understanding of what you're doing. Whether you have or have not added GST may not be that much of a problem as long as you let them know what you've done?)
Paula.
I only have the GRR the same all the rest are quite different so I will need to go back and see where I slipped up
Research assignment #4 Question 7.b.
Does anybody know how to find the
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median rental cost for a three-bedroom home in NSW?
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I found the mediam rental cost for a 3 bedroom house in NSW by using Domain and applying filter for house, rooms and with price.
I then sorted the information from lowest to highest.
I then had to load approx web 40 pages until I got the midle of the data set and I then could determine the medium rental cost.
Hope this help somebody else.
Regards
My results are fairly similar but different in a couple of areas.I'm wondering if my difference is because I'm saying that his equity is $66,000 since this is the deposit he paid since he contributed 30% LVR (30% of $220,000 = $66,000)
GRR = 12%
ROI = 4.86%
CoCR = 16.20%
GoER = 23.33%
NPP = 39.53%
I can see I'm going to be returning to these notes a lot in the future
Happy study
Hi everyone,
Some of these sorts of questions stump me, we get thrown random stuff like GST when we've had minimal exposure to it in the sessions so if anyone is having any dramas this is what I came up with. As per the previous comments, I'm assuming we're registered for GST and effectively not using any GST figures.
I'll be submitting this, but it might be wrong, however here it is in its entirety so you know how I came up with the numbers and we can cross check.
Purchase Price $200,000.00
GST $0.00 GST Excluded in this series of questions
Cost $200,000.00
Loan $140,000.00 (Purchase Price *0.7)
Cash Contribution $60,000.00 (Cost - Loan)
Annual Loan Interest $12,600.00
Monthly Loan Interest $1,050.00
GRR
Rent per month $2,000.00
Rent Annually $24,000.00
Purchase Price $200,000.00
Gross Rent Return 12.00% (annual rent / purchase price)
ROI
Annual Rent $24,000.00
Operating Costs $1,850.00
Interest $12,600.00
Return on investment 4.78% ((annual rent - operating costs - interest)/ purchase price)
CoCR
Cash contribution $60,000.00
Annual Rent $24,000.00
Operating costs $1,850.00
Interest $12,600.00
Cash on Cash return 15.92% ((annual rent - operating costs - interest)/ cash contribution)
GoER
Expected annual growth (%) 7.00%
Expected annual growth ($) $14,000.00
Current Equity $60,000.00
Growth on Equity Return 23.33% (Expected annual growth ($)/Current Equity)
NPP
Net Cash Flow $9,550.00
Expected annual growth ($) $14,000.00
Expected Profit $23,550.00 (net cash flow + expected annual growth ($))
Cash down $60,000.00
Net Profit Percentage 39.25% (Expected profit / cash down)
Hopefully its on the right track!
Good luck and happy investing.
BS