Tools
Model the return before you fall for the property.
Model gross and net yield, cash-on-cash, and how equity outruns debt across your hold. The engine weighs the same assets against the lease, covenant and capex a headline yield hides, well before you commit. This calculator is illustrative only.
The calculator
Run the numbers before you commit.
annual rent ÷ price
rent less outgoings ÷ price
yr-1 cash flow ÷ deposit
value less loan, end of hold
Property value grows (gold) while the loan balance falls (grey). The widening gap is the equity you build over the hold.
| Year | Value | Net rent | Loan | Cash flow | Equity |
|---|---|---|---|---|---|
| Year 1 | $2,070,000 | $110,500 | $1,300,000 | $26,000 | $770,000 |
| Year 2 | $2,142,450 | $114,367 | $1,300,000 | $29,867 | $842,450 |
| Year 3 | $2,217,436 | $118,370 | $1,300,000 | $33,870 | $917,436 |
| Year 4 | $2,295,046 | $122,513 | $1,300,000 | $38,013 | $995,046 |
| Year 5 | $2,375,373 | $126,801 | $1,300,000 | $42,301 | $1,075,373 |
| Year 6 | $2,458,511 | $131,239 | $1,300,000 | $46,739 | $1,158,511 |
| Year 7 | $2,544,559 | $135,833 | $1,300,000 | $51,333 | $1,244,559 |
| Year 8 | $2,633,618 | $140,587 | $1,300,000 | $56,087 | $1,333,618 |
| Year 9 | $2,725,795 | $145,507 | $1,300,000 | $61,007 | $1,425,795 |
| Year 10 | $2,821,198 | $150,600 | $1,300,000 | $66,100 | $1,521,198 |
Unlock the full return model.
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Read the result
Cash-on-cash dries up the moment rates rise.
The example above: a $2M office, 5.53% net yield, 35% deposit, interest-only at 6.5%. Net rent covers the interest with a little to spare, about 3.7% cash-on-cash in year one. That headroom is thinner than it looks. Push the interest rate to 8% and it nearly vanishes; at 9% the asset turns cash-flow negative and you are paying to hold it. A bigger deposit or a shorter hold changes the maths entirely, and the table above shows exactly when capital growth, not income, starts doing the heavy lifting.
Try it. Drag the interest-rate slider from 6.5% toward 9% and watch year-one cash flow cross into red.
Where the model stops
What this calculator won't tell you.
A model is a starting point, not a verdict. The two things this calculator can't price are exactly where most acquisitions go wrong, and exactly where a senior advocate earns the fee.
It can't read the tenant covenant
An ASX-listed national tenant on a long lease holds value in a downturn; a single private operator month-to-month does not. This model assumes constant occupancy at a constant rent. The covenant behind that income is what actually decides whether it survives.
Capex stays invisible
A building survey can surface six-figure landlord-side capex (roof, HVAC, façade) that no headline yield absorbs. This model never subtracts it. The 46-point due-diligence assessment behind every recommendation does, before you make an offer.
Who closes the gap
A model gets you to a number. A senior advocate gets you to the truth.
On a live brief, a Bold principal layers the covenant, the capex, the lease tail and the comparable evidence on top of a model like this. They inspect the asset on the ground, negotiate the price, and sign the position with their own name. You deal with that person from the first call to settlement, and they act only for you, never the vendor.
Beyond the back-of-envelope
Test these assumptions against a real brief.
The engine values a real asset independently, with the lease, covenant and comparable evidence behind it.
Illustrative only. This model uses simplified assumptions and is not financial, tax or investment advice. It ignores acquisition costs, depreciation, tax, vacancy and rent reviews, and assumes constant growth rates. Bold Property Group does not hold an Australian financial services licence. Speak to a licensed adviser before making a decision.