How to use property calculators properly
A calculator is most useful for testing assumptions, not predicting the future. Run more than one scenario. For example, test a higher interest rate, additional vacancy, lower rent and larger annual expenses rather than relying on a single best-case result.
Capital growth percentages are assumptions, not forecasts. Rental yield does not show capital growth, finance cost, tax or every ownership expense. Cash-flow modelling should also allow for repairs, insurance, rates, management, body corporate where relevant and a cash reserve for unexpected costs.
Compare the numbers with the property
Good-looking cash flow does not remove location, supply, building-quality or resale risk. Use the calculators alongside the 30-point investment property checklist, the NPIS market-research framework and the property investment risk guide.
These tools provide simplified illustrations only. They do not include every fee, tax, repayment structure or personal circumstance and are not financial, credit or tax advice.