Wealth Calculator (input data & wealth = gold line on right)

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This calculator is intended to give a general indication of the potential impact on your net wealth from investing in property. Faith Financial Pty Ltd in no way guarantees that the results from the calculator will come to fruition. The property market and/or your personal situation may well turn out to be drastically different from the variables and estimates you input.

One key assumption is that you can secure the loans needed to purchase the property/s to build your wealth through growth in value. Contact us for some answers on borrowing capacity.

The suggested 'key variables' and 'other estimates' pre-filled for the calculator are estimated averages only and not specific to your individual situation. Consequently please remember that the results are approximate in nature and not intended to be relied upon too heavily. For more accurate results you can input percentages more closely aligned to your personal circumstances. Also it is a good idea to test different rates and compare the varying results.

Percentages and rates entered are assumed consistent throughout the period covered in the results.

Property purchases, if any, are assumed to be made at the start of each year.

Home, personal, credit card, etc, loan repayments are assumed to be accounted for in calculating the 'savings per month' figure.

Interest is calculated annually with no monthly compounding.

Investment loans are assumed to be interest only and not principal and interest loans.

When calculating the rental return remember that your properties are not likely to be always rented for the full year and there may be defaults. See us about mitigating risks.

When estimating the running costs rate you should take in to account land tax liabilities that may arise when certain thresholds are reached for land ownership in each state/territory.

We use your top tax rate (average for couples) in the calculator, as determined by your taxable income(s) entered. This rate is assumed to be consistent throughout the whole period covered in the calculator. This may not be true however, for example your tax rate may be lower if you have significant losses due to negative gearing.

This calculator makes no adjustments for any wage or consumer price inflation (CPI).

The wage information you enter is only used to calculate your top tax rate and is not used at all in determining what funds you have available to invest in property and has no affect on the subsequent net wealth calculations.

For the setup costs percentage estimate remember to include conveyancing/solicitor’s fees as well as purchase stamp duty and loan set up costs (including lenders mortgage insurance LMI which is usually applicable for loan to value ratios above 80%).

Loan stamp duty is included in setup costs & the tax deductible benefit is ignored.

For the depreciation claim % estimate ask us for help.

The calculator ignores any potential capital gains or other income tax liability that might arise upon the sale of any property at any time throughout the time period covered.