Net Return Calculator

The following calculator allows you to estimate the net return from an investment unit or house.

Residential property is often talked about in terms of gross returns for convenience, however this is not always a good indication of net return and it is the "net return" a property will generate that investors should be aware of.

To calculate the "net return" an investor has to make sure provision is made for:

• Vacancy rates. How many weeks a year will the property be occupied?
• Local Authority / Council Rates.
• Insurance (building, public liability, contents if applicable).
• Land Tax (This is a personal tax and relates to your total holding).
• Body Corporate Fees.
• Repairs and Maintenance. What will it cost each year to maintain the property in a condition where the income will not deteriorate. In the calculator below a percentage figure is adopted.
• Management. Even if you intend to manage your own property you should be aware of the time and effort in doing this, which is a cost to you. In the calculator below a percentage figure is adopted.
• Many investment units are subject to a holiday letting agreement where the owner might contribute to things like cleaning and advertising etc. The calculator is not designed to calculate the net return from a holiday let unit.

Although interest is a real cost and should be considered by an investor, it is personal and not property specific and therefore has not been addressed in the calculator.

Please read before using the calculator