Find out how much a property's value needs to grow each year to cover what it costs you to buy and hold it, after the rent comes in. Uses an interest only loan.
Add the buying costs to the interest and holding costs for each year you hold. Take off the rent for those years, with the rent rising each year. What is left is the shortfall the property has to make up in value.
Divide the shortfall by the purchase price, then by the number of years held. That is the average growth needed each year to break even.
Tax deductions and the new rules from 1 July 2027 can change your position. Speak with your accountant.
Agent fees and marketing when you sell are not included.
The loan is treated as interest only. Paying down principal is saving, not a cost.
Most of the investment properties we secure for clients are bought off market or pre market. Book a strategy call and we'll run your plan with you.
It is the point where the rise in value, plus the rent you have collected, covers everything the property has cost you to buy and hold.
Buying costs are paid once. Spread over more years, and with rent rising each year, they need less growth each year to recover.
Yes. Stamp duty is usually the largest buying cost. Check your state revenue office for the amount.
More investor calculators: Cashflow calculator · Capital growth calculator · Opportunity cost calculator
General information only. This calculator is not financial or tax advice.
