IP Calculator

Hi there,
I'm very new to this forum, and also very new in the game of property investing. I found the IP tool on the site and just wanted to ask a few questions if I may to the excel modeller or users; It's an amazing spreadsheet and I am very grateful for you sharing it as I know the hard work that is invlved in modelling spreadsheets; (please forgive me if some of the questions are naive)

a) In sheet "Original Input" cell B16 (Loan amount); the formula takes the total cost less deposit but adds the nortgage stamp duty. Isn't this double dipping as the Borrowing costs (Cell K13 includes the mortgage stamp duty and is part of the cost in Cell B6)

b) In the "IPcalculations" sheet cell C2, the formula limits the days in the year to 360 for year 1; if a property is bought at the beginning of the FY the cell zeroes out; is this correct?

c) If I were to negotiate a deal and get a 20% discount on the market price; where would I factor this instant equity in the input sheet?

As I said, love the spreadsheet just wanted to know a few things. Really appreciate it being put up on this site

 

Annamelvyn

a link to the spreadsheet would help

Cheers

 

i think that might be my spreadsheet, and yes there are a couple of faults in it,

regards to c, you cant really do that unless the bank values it 20% above. i think this is a very rare circumstance so i didnt add it

a) i think i did it that way because of a circular reference (due to mortgage stamp duty) but ill have another look to ensure its correct as possible...

but yes a link would be good so i know what version your using (i think im up to v14)

 

Spreadsheet

Hi Dave

Thanks for responding to my enquiry, I am using your version 17.

Sorry have another question:
1. Where do you get the Rental Reality yield from, how is that calculated and what does it mean?
2. And the same goes for Rental Reality Value, if its green what does that mean and if red what does that mean too?

Cheers
Anna

 

you can get the info from sources like residex but my personal opinion is its not something very useful. I personally dont look at it.

I think it trys to capture if you are puchasing in a boom or bust. If its green, it means that subject to the area you are getting a better yield than the average market. Red is the opposite. Quite pointless as i dont like working on averages but mass well be left in.

The lastest ive got is 14, so no idea where 17 has come from. Maybe i can get a copy of you or the link you got it from.