What it costs to own
What will a home cost you each month once you own it? Put in the numbers you have, and the calculator works it out.
The result
- Loan amount
- Monthly instalment
- Monthly holding cost
- Yearly holding cost
- Gross rental yield
- Monthly cash flow after costs
This is a scenario worked out from your numbers. It is not a quotation and not investment advice.
How it is worked out
- The monthly instalment uses the standard amortisation formula; at a 0% rate, the principal is simply spread evenly.
- Monthly holding cost = instalment + maintenance fee + sinking fund + (assessment + quit rent + insurance) ÷ 12.
- Gross rental yield = annual rent ÷ price.
- Monthly cash flow = (rent × months let − yearly holding cost) ÷ 12.
Not included: stamp duty, legal fees, renovation, repairs, agent fees, income tax and changes in the interest rate.
Costs beyond the price
- Stamp duty on the transfer and the loan agreement
- Legal and valuation fees
- Renovation and furniture
- Moving
- Agent fees if you let it
Taxes, duties and exemptions change with policy. Ask your lawyer for a written quote.
Start with the purpose
To live in
- Are the instalment and the maintenance fee comfortable every month?
- Does the layout suit your household now and in five years?
- Do the parking, the commute and the schools work?
- Does the handover date fit your plans?
To let
- What do similar units nearby actually let for, from signed tenancies rather than asking rents?
- After the instalment, fees, sinking fund, taxes and insurance, is each month positive or negative?
- Could you carry two or three empty months?
- How many units nearby hand over at the same time?
