Return on investment
Enter the price, the rent, the costs and the mortgage — or start from what Landsight holds about the property — and see the yield, the cash flow and the return over the years you hold it, with every assumption on the page.
From an address to a plan you can stand behind: research, feasibility, design and delivery in a minute and a half.
Watch on YouTubeGross yield is the year's rent over the price. Net yield takes off the running costs — rates, insurance, maintenance and management. Cash flow takes off the mortgage too. Total return adds the change in value over the time you hold, and IRR turns it into one yearly rate you can compare with other investments.
The interest rate, the deposit and the loan term you enter, principal and interest or interest only, and a stress test of what a higher rate does to the cash flow.
A current mortgage rate and an Auckland rates bill to start from, each with its date, to replace with your own.
Save each analysis to come back to it, or compare it with another property.
Questions
Gross yields in Auckland are usually lower than in the rest of New Zealand because prices are higher; investors compare a property's net yield and cash flow against their borrowing cost. Landsight works out both for the property in front of you rather than quoting an average.
Add the income and the change in value over the time you hold the property, take off the costs, and divide by the money you put in. IRR does the same over time, allowing for when each dollar comes and goes.
Which plan has it
Investment analysis: Premium and Enterprise.
Related
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