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Speadsheet for installment gearing into MF 2016-09-15

Speadsheet for installment gearing into MF

  1. Chris.R_WA

    Chris.R_WA Well-Known Member

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    Perth, WA
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    Speadsheet for installment gearing into MF - Speadsheet for installment gearing into MF

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    Last edited by a moderator: 15th Sep, 2016
  2. coopranos

    coopranos Well-Known Member

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    Gday
    Cheers for posting that. Got me thinking a bit.
    I have had a shot at a spreadsheet myself, including extras like increased margin lending as equity allows, interest expenses, separation of capital growth and dividend, etc.
    Would be nice to get a good comprehensive model together.
    Would be appreciated if anyone could have a look through my spreadsheet (its not beautiful but at least it MAY work), and check out the formulas and calculations used, and make any desired tweaks, corrections, additions, or adjustments, and post the result.
    I have separated it into 2 strategies, a "conservative" strategy, and an "aggressive strategy", and got a comparison showing the results at the end. Are the results in any way indicitave of real life? Doubt it, as things like tax would eat into it over time (may be possible to offset this with deferred income and imputation credits...).
    I honestly dont know any long term (3-5 year +) figures for yield and growth, perhaps some of the more experienced folk could jump in here with some suggestions.
    Remember though, this is basically a set and forget strategy, just needs margin loan tweaks/increases from time to time, other than that it costs less each week than a single negatively geared property (just costs the savings plan each month, and this hasnt even been increased over time). It is pretty highly geared for the first few years, so I dont know if that would mean other investments like property would be put on the backburner during the early years. It may also be beneficial to have a Line of Credit available against a property to help out with any early margin calls (66.7% is somewhat tight, but still allows a fair amount of wiggle room with some lenders going up to 75% with a 85% buffer).
    Any and all input is greatly appreciated (and dont attack my aggressive ways, it is just a base to start from to try to get a community developed model happening that may be beneficial for some rough planning!)
     

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  3. Redwing

    Redwing Well-Known Member

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    PERTH..WA
  4. Chris.R_WA

    Chris.R_WA Well-Known Member

    Joined:
    7th Aug, 2006
    Posts:
    113
    Location:
    Perth, WA
    No worries

    No worries Redwing, that SS from the other post just showed simple growth over one year, whereas I was really looking to try and represent the quaterly compounding effect of a fund like Navra. This compounding quaterly can be significantly more powerful, depending on the total invested.
    ie. 4 quaterly distributions of 3%, compounds better than a single annual distribution of 12%.

    Besides, I like seeing the exponential graph...starts to look quite nice after a few years! :D