All calculators are downloadable Excel spreadsheets that allow you to save and amend your own personal data.With this spreadsheet, enter your personal data in the purple coloured cells.

Should I buy a rental property or invest elsewhere spreadsheet

One of my most comprehensive calculators, and a must see for anyone thinking about buying a rental property.

This calculator compares the decision to buy a rental property vs using that money to invest in another asset (such as shares) instead.

Of course no one can predict the rate of investment returns, rental income, house price increases and all the other variables. So have a play around with the different variables and see what assumptions you are comfortable with. Small changes that are more favourable towards property or shares can make a significant impact on the results.

One limitation is the calculator doesn’t allow for changes to tax rates if you increase or decrease your income but that is just tinkering around the edges anyway. You will also need to calculate your own non property investment returns AFTER tax and fees. Because the decision to buy a rental property or invest elsewhere relies on so many assumptions, it doesn’t matter too much if you don’t know how much your investment taxes are. Just a general guess is fine here, as everything else is a guess too. That is whole point of making the decision on one investment over on another. It is comparing two things with a heck of a lot of future based assumptions and unknowns.

For personalised advice on deciding whether or not an investment property should be part of your financial plan, then get in touch for a no obligations chat to see how we may be able to add value for you.

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