Property Investment Buytolet Sample

PROPERTY REALITY
BUT TO LET PROPERTY INVESTMENT TEMPL

This template enables users to record transactions for an unlimited number of buy to let property investments and to vi
cumulative investment return on an individual property or portfolio basis. The functionality that has been included i
property software program but the template is a lot easier to install and use because it is based in Microsoft Excel.
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TMENT TEMPLATE
to let property investments and to view a comprehensive analysis of annual and
unctionality that has been included in the template matches any comprehensive
e it is based in Microsoft Excel.
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f the template including all formulas. You will also be able to edit and customize
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Property Reality | Buy to Let Property Investment Template
Instructions
www.propertyreality.co.za
This template enables users to record transactions for an unlimited number of buy to let property investments and to view a
comprehensive analysis of annual and cumulative investment return on an individual property or portfolio basis. The
functionality that has been included in the template matches any comprehensive property software program but the template
is a lot easier to install and use because it is based in Microsoft Excel. This template is by far the most comprehensive and
accurate investment return calculation solution for the South African residential property market.
Note: We highly recommend using this template in conjunction with our unique property investment forecast template which
enables users to compile an accurate investment forecast for any buy to let property investment over any investment period
from 1 month to 20 years. By comparing the results that are produced by these two templates, users are able to measure
actual investment return against initial expectations. We also recommend using our primary residence property investment
template to measure the actual investment return that is achieved from any primary residence.
The following sheets are included in this template:

Lessor - this sheet includes information about the property owner and also requires the user to specify the default values that
are used in calculating agents commission, income tax and capital gains tax provisions. The lessor (property owner)
information that is entered on this sheet is automatically included on the tax invoice and users are also able to specify an
accounting or tax year end period.
Lessee - this sheet includes information on the lessees who rent properties from the owner. The information that is entered
on this sheet are included on the tax invoice and used to populate the lessee list boxes on the Income sheet.
PropSetup - this sheet requires users to create a unique property code for each buy to let property investment. The property
purchase price, initial bond amount and the effective property date also need to be specified on this sheet. When a property
is sold, the property status needs to be amended on this sheet and a selling date needs to be entered. A calculation of the
equity that is available in each property investment as well as the profit or loss on the sale of property investments is also
included on this sheet.
Allocation - this sheet includes all the pre-defined allocation codes that are used to calculate a comprehensive monthly and
annual cash flow report. No user input is required on this sheet.
Income - all property income transactions need to be entered on this sheet. Income transactions consist of mainly the
monthly rent income but can also include property sales, input VAT refunds and access bond withdrawals.
Invoice - this sheet includes a tax invoice which can be compiled automatically by entering the appropriate tax invoice
number in cell H6. The tax invoice also functions like a customer account statement and includes an opening balance and a
monthly age analysis. All the information required on the tax invoice is entered on the other sheets of this template.
Expenses - all property expenses and other payments should be entered on this sheet.
Market - users are required to enter an annual market value for each property on this sheet. Only the cells that require user
input are displayed with a yellow cell background.
Bond - users are required to enter an outstanding bond amount for each property at the end of each annual period on this
sheet. Only the cells that require user input are displayed with a yellow cell background.
CashFlow - this sheet includes an annual cash flow report that is automatically calculated based on the transactions that are
entered on the Income and Expenses sheets. No user input is required aside from selecting the appropriate property code.
The cash flow report for the entire property portfolio can be displayed automatically by simply clearing the contents of the
property list box.
Results - this sheet includes a comprehensive analysis of the annual and cumulative investment return of the selected
property or the property portfolio. Individual property codes can be selected from the property list box on the CashFlow sheet
or the list box can be cleared to compile an investment return analysis for the entire property portfolio. No user input is
required on this sheet.
Monthly - this sheet includes a monthly cash flow report. The monthly report can be displayed for any annual period that is
included on the CashFlow sheet by selecting the appropriate annual period from the list box at the top of the sheet. No other
user input is required on this sheet.
Lessor Setup
Lessor Name
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Instructions
Enter the name of the property owner (lessor) in cell C4. The name that is entered in this cell is automatically included on the
tax invoice on the Invoice sheet.
Address
Enter the billing address of the lessor in the cell range from cell C7 to cell C10. The billing address is automatically included
on the tax invoice on the Invoice sheet.
Contact Details
Enter the contact number, fax number and e-mail address of the lessor in the cell range from cell C12 to cell C14. The
contact details that are entered in these input cells are automatically included on the tax invoice.
VAT
Select the checkbox in cell B16 if the lessor is VAT registered, enter the appropriate VAT registration number in cell C17 and
the applicable VAT percentage in cell C18. The VAT registration number is included on the tax invoice and the VAT
percentage is used to calculate the output VAT that will have to be paid to the South African Revenue Service when a
property is sold. The output VAT calculation forms part of the investment return analysis on the Results sheet - refer to the
Property Investment Return Analysis section of the instructions for more information on the treatment of VAT in this template.
Banking Details
The banking details of the lessor should be entered in the cell range from cell C21 to C24. The banking details that are
entered are included on the tax invoice on the Invoice sheet.
Default Values
Enter the estimated agents commission that will be paid when a property is sold in cell C27. The agents commission
percentage that is entered in this cell is used to calculate a provision for the selling costs that will be incurred when a property
is sold. The selling cost provision forms part of the equity calculation and is included in row 12 on the Results sheet.
Enter the effective income tax percentage of the lessor in cell C28. The income tax that is payable on buy to let property
investments are calculated based on the enterprise form of the lessor and the income tax rates that are applied to the
different types of enterprise forms. Companies, close corporations and trusts are subject to income tax based on fixed
income tax rates and individuals are taxed based on a sliding income tax scale. The income that an individual earns from
other sources therefore plays an important role in calculating the effective income tax rate that needs to be applied to the
taxable income that is generated from buy to let property investments.
Note: We strongly recommend that you use our Property Income Tax template in order to calculate an accurate effective
income tax rate. This template also contains a lot more information on property income tax calculations.
Enter the capital gains tax inclusion rate that is applicable to the enterprise form of the lessor in cell C29. This is the
percentage of capital gains on the disposal of property investments that needs to be included in the calculation of taxable
income. The capital gains tax inclusion rate for companies, closed corporations and trusts is 50% while the capital gains tax
inclusion rate for individuals is 25%.
Note: Income tax and capital gains tax variables are subject to regulatory changes, usually on an annual basis. All of the
residential property variables that are subject to regulatory changes are included in a free Excel template that can be
downloaded from the Templates page of our website. If any of the variables that are subject to regulatory changes are
amended, you can simply update the values in any of our templates with the values that are included in the free default
variables template.
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Instructions
Note: The effective capital gains tax percentage in cell C30 is calculated from the effective income tax rate that is specified in
cell C28 and the capital gains tax inclusion percentage that is specified in cell C29.
Enter a discount rate in cell C31. This rate is applied to the cash flow totals in order to calculate the net present value (NPV)
on the Results sheet. The NPV calculation measures whether the required investment return (the discount rate) exceeds the
actual investment return. The NPV calculation will be covered in a lot more detail later on in the instructions but it is important
to know that the calculation is based on the discount rate this is specified in cell C31.
Select the checkbox in cell B32 if you want the template to automatically calculate the property income tax included on the
annual cash flow report. If the checkbox is cleared, the appropriate income tax amounts will not be calculated automatically
and you will therefore have to calculate the annual income tax amounts independently and include these amounts in the
annual cash flow calculation by recording an annual income tax transaction on the Expenses sheet.
Year End
Select the appropriate accounting or tax assessment year end period from the list box in cell C34. All the annual and monthly
periods on the CashFlow, Results and Monthly sheets are determined based on the period that is selected from this list box.
You can however amend the reporting dates by simply selecting a different period from this list box but you should note that
changing the reporting periods may require some of the data that you've entered on the other sheets in this template to be
amended as well.
Lessee Setup
Lessee Code
A unique lessee code needs to be created for all the lessees that rent a property from the lessor. These codes need to be
entered in column A and are included in a list box in column D on the Income sheet. The appropriate lessee code is also
included in cell G10 on the Invoice sheet.
We recommend using an alphanumerical code as the lessee code. You can either use a standard code format (for example
LES001, LES002, etc.) or use a code convention that makes it easier to identify the appropriate lessee by including a
combination of the lessee's name and the lessee number.
Example: If the name of a lessee is S Smith and the lessee is the second lessee of a particular property, a lessee code of
"SMI002" can be specified.
Name
Enter the name of the lessee in column B. The lessee name is included in the list box in column D on the Income sheet in
order to make it easier to identify the appropriate lessee when recording transactions. The lessee code is also included in cell
G11 on the Invoice sheet.
Address
The lessee's billing address needs to be entered in column C to G. The lessee address is usually the address of the property
that is being rented or a different postal address. The address that is entered on the Lessee sheet is included in cells G12 to
G15 on the Invoice sheet.
VAT Number
If the lessee is registered for value added tax (VAT) purposes, the appropriate VAT number should be entered in column H.
The lessee VAT number is included in cell H17 on the Invoice sheet.
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Instructions
Property Code
The property code of the property that the lessee rents from the lessor should be selected from the list box in column I. The
data in this column is for recordkeeping purposes only and is not included in any of the other sheets.
Occupation Date
Enter the date on which the lessee occupies the appropriate property in column J. The occupation date that is entered in this
column is for recordkeeping purposes only and is not included in any of the other sheets.
Deposit Amount
Enter the amount of the deposit that is received from the lessee in column K. This deposit amount needs to be retained and
refunded to the lessee at the end of the lease period (after deducting costs for any damages that may have occurred during
the period of occupation) and should therefore not form part of the income transactions that are recorded on the Income
sheet. The deposit amount that is entered on the Lessee sheet is therefore for recordkeeping purposes only and is not
included in any of the other sheets in this template.
General
The lessee codes that are created on the Lessee sheet should not be deleted after the appropriate lessee has moved out of
the property because you may want to refer back to the information in future.
Note: The contents of the Lessee sheet have been included in an Excel table. Additional lessee codes can be added to the
table by simply entering a new lessee code in the first blank cell directly below the table in column A - the Excel table will
automatically be extended to include the new code.
Property Setup
Property Code
A unique property code needs to be created in column A on the PropSetup sheet for each residential property included in this
template. We recommend using a property code that makes it easy to identify the appropriate property when recording
transactions on the Income and Expenses sheets, selecting a property code from the list box on the CashFlow sheet and
entering the annual market values and outstanding bond amounts on the Market and Bond sheets.
All property codes should be created as alphanumerical codes and we recommend using a code that consists of letters that
assist in identifying the property to which the code relates and numbers that indicate the property investment number. Our
example property codes consist of three letters and three numbers, but you can use any code length as long as it includes
both letters and numbers.
Example: If a property is situated in Smith Street and is the second property investment that is recorded in the template, a
property code of "SMI002" can be used. You can also use the house number in the property code if the property is situated in
an estate or complex. If a property is situated in Edenglen Estate and is the third property that is included in the template, a
property code of "EDG003" can be used.
Property Address
The property's physical address should be entered in column B. This address should make it easier to identify the property
and is included at the top of the annual cash flow, monthly cash flow and investment return analysis reports that are included
on the CashFlow, Monthly and Results sheets.
Purchase Price
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Instructions
The property purchase price needs to be entered in column C. This amount should include the deposit amount and VAT (if
applicable). The property purchase price is used in a number of calculations on the Results sheet and also plays an important
role in calculating the annual and cumulative capital growth rates that are included on the investment return analysis.
Note: We have added conditional formatting to this column which results in a cell being highlighted in orange if a property
purchase price has not been entered in this column. The formatting can be removed by simply entering the appropriate
property purchase price.
Bond Amount
The initial bond amount should be entered in column D. This amount is used to calculate the capital and interest that is repaid
in the first year and is also included in the calculation of the percentage capital that is outstanding on a bond at the end of
each annual period. If a property is financed entirely out of the owner's equity, a nil amount should be entered in this column.
Note: We have added conditional formatting to this column which results in a cell being highlighted in orange if a bond
amount has not been entered in this column. The formatting can be removed by simply entering the appropriate bond amount
or a nil value if a bond is not used to finance the property.
Effective Date
The effective commencement date of the property investment needs to be entered in column E. The input in this column is
very important because the first annual period included in the cash flow and investment return reports are determined based
on the date that is entered in this column. The reporting dates that are included in the portfolio cash flow and investment
return reports are also based on the first (oldest) property effective date that is entered in this column.
The effective date column therefore enables users to specify the first reporting date that should be used for the each property
investment and the property portfolio as a whole instead of simply basing the reporting periods on the date of the first
transaction that is recorded on the Income or Expenses sheet. By adding a user defined date setting, we have therefore
provided increased flexibility in terms of the reporting dates which many users may require.
Note: The reporting periods are not only determined based on only the effective dates that are entered on the PropSetup
sheet. The year end period that is specified in cell C34 on the Lessor sheet determines the month that is used in the annual
reporting periods and the reporting years are determined based on the year end period that the appropriate property effective
date or first portfolio effective date falls into.
Example: If a property investor acquires a plot and plan property investment and pays an initial deposit amount two years
before the date of occupation, the investor may want to compile the investment return analysis based on the occupation date
instead of the first transaction date. This can be achieved by specifying the occupation date as the effective date - the annual
reporting periods will commence on the date that is specified and all transactions that are dated before the first annual year
end date will be included in the first reporting period on the cash flow and investment return analysis reports. Note that
transactions that pre-date the first annual reporting period will however be included in the portfolio reports based on the
actual transaction dates if there are existing property investments that pre-date the effective date that is specified.
Note: The monthly cash flow report that is included on the Monthly sheet is based on the actual transaction dates. If you
therefore specify a effective date that is not consistent with the first transaction date that is entered on the Income and
Expenses sheets, the totals on the monthly report for the first annual period may not agree to the totals on the annual cash
flow report for the first annual reporting period. The transactions totals on the two reports for all subsequent reporting periods
will however be the same.
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Instructions
Note: We have added conditional formatting to the effective date column which results in a cell being highlighted in orange if
an effective date has not been entered in this column. The formatting can be removed by simply entering the appropriate
effective date.
Property Status
Select a property status from the list box in column F. The list box contains two property statuses, namely "Active" and "Sold".
The default property status is "Active" and the status only needs to be changed to "Sold" once the property is sold. The
PropSetup sheet includes equity balance calculations for all active property investments and a profit or loss calculation for all
the property investments that have been sold.
Note: We have added conditional formatting to the property status column which results in a cell being highlighted in orange if
a property status has not been selected in this column. The formatting can be removed by simply selecting the appropriate
property status.
Bond Status
Select a bond status from the list box in column G. The list box contains two bond statuses, namely "Active" and "Settled".
The default bond status is "Active" and the status only needs to be changed to "Settled" once the outstanding bond amount
has been repaid in full or if the property is sold. The Bond Balance amounts in column J are calculated for all properties with
a bond status of "Active". The calculation determines the amount of the last outstanding bond amount that has been entered
on the Bond sheet. If a nil amount is entered on this sheet, the calculation will still reflect the last amount that is greater than
nil. If a bond has been repaid in full, you therefore have to change the bond status to "Settled" in order to override the default
calculation in the Bond Balance column.
Note: We have added conditional formatting to the bond status column which results in a cell being highlighted in orange if a
bond status has not been selected in this column. The formatting can be removed by simply selecting the appropriate bond
status.
Date Sold
When a property is sold, the property status in column F should be changed to "Sold" and the date on which the sale takes
place should be entered in column H. All the transactions relating to the sale (selling price, bond settlement amount, agents
commission, bond cancellation fees and capital gains tax) should also be recorded on the Income and Expenses sheets.
Note that the cells in column H should be left blank for all active property investments.
Note: We have added conditional formatting to the sales date column which results in a cell being highlighted in orange if a
sales date has not been entered in this column and the property status in column F has been changed to "Sold". The
formatting can be removed by simply entering the appropriate sales date.
All the cells in the columns with a light blue column heading contain formulas that are automatically copied for all
the new properties that are added to the PropSetup sheet.
Market Value
The formula in this column looks up the most recent market value that has been entered for the particular property on the
Market sheet. If no market values have been entered for the property, a nil value is included in column I and the cell is
highlighted in red. The highlighting will only be removed once the appropriate market value has been entered on the Market
sheet.
Bond Balance
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Instructions
The formula in this column looks up the most recent outstanding bond amount that has been entered for the particular
property on the Bond sheet. If no outstanding bond amounts have been entered for the property, a nil value is included in
column J and the cell is highlighted in red. The highlighting will only be removed once the appropriate outstanding bond
amount has been entered on the Bond sheet.
The red highlighting will only be included in column J if the bond status in column G is "Active". If a property is not financed
through a bond or if the bond has been repaid in full, a bond status of "Settled" should be selected from the list box in column
G. The red highlighting will then be removed automatically.
Equity 1
The formula in this column calculates the equity that is available in a property investment before taking disposal costs into
account. This balance is calculated by deducting the outstanding bond balance in column J from the market value of the
property in column I.
Disposal Cost
The formula in this column calculates the estimated disposal cost that will be incurred if the property is sold. This amount
consists of the agents commission, output VAT amount and the capital gains tax forecast.
The agents commission is calculated based on the market value in column I and the agents commission percentage that is
specified in cell C27 on the Lessor sheet. An output VAT amount will only be calculated if the checkbox in cell B16 on the
Lessor sheet has been selected and is calculated by applying the VAT percentage that is specified in cell C18 on the Lessor
sheet to the market value in column I.
Example: If the VAT percentage that is specified in cell C18 on the Lessor sheet is 14% and the property market value is
R1,000,000, the output VAT amount is calculated by dividing the market value by 114 and multiplying the result by 14. A
negative amount of R122,807 will therefore be included in the disposal cost column.
Note: The output VAT amount is included in the disposal cost because this amount will have to be paid to SARS when the
property is sold and the lessor is registered for VAT purposes. By including the output VAT amount in the disposal cost, the
output VAT amount is effectively deducted in the calculation of the equity that is available in the property investment which
we believe is the most prudent and accurate calculation approach.
If a capital gain is realised on the disposal of a property, an amount of capital gains tax (CGT) will be payable to SARS and
will form part of the first income tax return that is submitted after the disposal of the property. The capital gain is calculated by
deducting the sum of the property purchase price, transfer costs, renovation costs and selling costs from the selling price of
the property. The CGT amount that is included in the disposal cost column is calculated based on the market value of the
property (instead of a selling price) and by including this amount in the disposal cost, we are effectively providing for the CGT
that has to be paid when the property is sold.
Note: The full capital gain is not included in taxable income - the amount is reduced by the capital gains tax inclusion rate
which is specified in cell C29 on the Lessor sheet and taxed according to the effective income tax rate of the lessor. Our CGT
calculation is therefore based on the effective capital gains tax percentage that is calculated in cell C30 on the Lessor sheet.
Equity Balance
The formula in column M calculates the equity that is available in a property investment after taking the estimated disposal
cost into account. This amount is therefore calculated by deducting the disposal cost in column L from the equity 1 balance in
column K.
Selling Price
Page 9 of 53
Instructions
The formula in column N looks up the selling price of a property if the property has been sold and the property status in
column F has therefore been changed to "Sold". The selling price should be recorded as a transaction on the Income sheet. If
the property status has been changed to "Sold" and no selling price has been recorded on the Income sheet (a nil value is
calculated), the appropriate cell will be highlighted in red and the highlighting will only be removed once a selling price has
been recorded on the Income sheet.
Profit / Loss
The formula in column O calculates the profit or loss that has been realised on all the properties that have been sold. An
amount is therefore only included in this column if the property status in column F is "Sold". The profit or loss that is
calculated includes all the transactions that have been recorded for the particular property on the Income and Expenses
sheets (including the selling price that is included in column N).
General
The calculated columns on the PropSetup sheet have been included in order to calculate the equity that is available in each
property investment (column M) and the profit or loss that has been realised on all the properties that have been sold (column
O). These amounts are calculated for all the properties that are included on the sheet and a portfolio total is also included
above the column headings in row 3.
The equity balances and the profit or loss amounts of the individual properties will always agree to the amounts that are
included in the investment return analysis on the Results sheet (when the particular property code is selected on the
CashFlow sheet). The portfolio balances may however differ because of a difference in the CGT calculation methodology that
is applied on these two sheets.
The CGT amount that is calculated on the PropSetup sheet is included in the disposal cost column and the portfolio total is
calculated as the sum of all the disposal costs of the individual properties. The CGT amount is calculated on a per property
basis and an amount of nil is included in the disposal cost calculation if the disposal of the particular property would result in a
capital loss.
The portfolio disposal cost calculation on the Results sheet is however calculated based on all the properties that are
included in the portfolio. If the disposal of any property would result in a capital loss, the loss is effectively offset against the
capital gains that are realised on the other properties in the portfolio. It is only when the disposal of the entire portfolio would
result in a capital loss that the CGT amount is limited to nil.
This difference in the calculation approach of the two sheets may result in the total disposal costs on the PropSetup sheet
differing from the total disposal costs (sum of the VAT, selling costs and capital gains tax) on the Results sheet. As a result,
the equity balances on the two sheets may also differ. From a portfolio point of view, the calculations on the Results sheet are
deemed to be more accurate.
Note: The market values and outstanding bond amounts on the Market and Bond sheets are recorded based on the relative
position of the particular property code on the PropSetup sheet. If the relative position of the property codes is changed, the
market values and outstanding bond amounts that have been recorded on these two sheets may therefore be compromised.
The order of the property codes on the PropSetup sheet should not be amended and you should therefore also not
sort the data on this sheet. We also do not recommend deleting any of the property codes once you have recorded
market values or outstanding bond amounts on the Market and Bond sheets.
Note: The contents of the PropSetup sheet have been included in an Excel table. Additional property codes can be added to
the table by simply entering a new property code in the first blank cell directly below the table in column A - the Excel table
will automatically be extended to include the new code and all the formulas in the columns with light blue column headings
will also be included in the new row.
Page 10 of 53
Instructions
Transaction Allocation Codes
All the transactions that are entered on the Income and Expenses sheets need to be allocated to one of the pre-defined
allocation codes that are included in the list boxes in the Allocation Code column on these sheets. The items that are included
in these list boxes are determined by the allocation codes that are listed on the Allocation sheet.
Transfer Costs
All the transfer costs that are paid when purchasing a property should be allocated to this code. This includes the transfer
duty that is paid to SARS as well as the fees that are paid to the transfer attorney.
Note: If any part of the transfer costs are financed through a bond of more than 100% of the property purchase price, we
recommend that you record the transfer costs on the Expenses sheet and also record the amount of the transfer costs that
are financed through the bond on the Income sheet and that you allocated this amount to the Transfer Costs allocation code.
The cash outflow that will be included on the first year's cash flow calculation will then be the net transfer costs that have
been paid.
Bond Costs
All the bond fees that are paid to the appropriate bank or the attorney responsible for the bond registration should be
allocated to this code. Note that the fees that are included in the bond capital (like bank initiation fees, admin fees and in
some instances insurance premiums) and repaid as part of the monthly required bond repayments should not be included in
the Bond Costs allocation. These costs form part of the monthly required bond repayments and should therefore be allocated
to the Bond Repayments allocation code.
Deposit Amount
If a deposit amount is paid when purchasing a property, the appropriate deposit amount should be recorded on the Expenses
sheet and allocated to this allocation code.
Note: This allocation code should also be used to record input VAT amounts (received after claiming a refund from SARS) on
the Income sheet. The appropriate input VAT amount should be calculated based on the property purchase price that is
entered in column C on the PropSetup sheet. Input VAT is only applicable if a property is acquired by an entity that is
registered for VAT purposes.
Renovation Costs
All the renovation costs that are incurred during the property investment period should be recorded on the Expenses sheet
and allocated to this code. Renovation costs differ from repairs & maintenance costs in that the property (and also the value
of the property) is improved by the alterations instead of simply repairing the appropriate component of the property to its
original condition (which falls under repairs & maintenance).
Renovation costs are also not treated in the same way as repairs & maintenance for income tax purposes. The cost of
renovating a property is of a capital nature because it results in a probable increase in the value of the property while repairs
& maintenance is seen as an operational cost and is therefore not of a capital nature. Renovation costs are not allowed as a
deduction for income tax purposes, but can be deducted for capital gains tax purposes. Repairs and maintenance costs are
operational costs and are therefore allowed as a deduction for income tax purposes but not for capital gains tax purposes.
It is therefore imperative that you keep proper record of all the renovation costs that are incurred during the property
investment period because these costs could significantly reduce any capital gains tax liability that may exist when selling a
residential property.
Rent Income
Page 11 of 53
Instructions
The monthly rent income that is received from the lessee should be allocated to this code. This allocation code should also
be used for any rent subsidies that are received from the appropriate developers. We recommend recording the gross rent
income on the Income sheet and recording any property management fees that are deducted from the gross rent income
(and effectively retained by the property management company) on the Expenses sheet.
Note: The rent income that is recorded on the Income sheet is included in the annual and monthly cash flow reports based on
the payment dates that are specified in column I. If a rent amount is therefore outstanding, it will not be included in the cash
flow reports until it is paid and a payment date is entered in this column.
The rent deposit amount that is received from a lessee at the start of the lease period should not be recorded as a
transaction on the Income sheet. This amount will have to be refunded to the lessee at the end of the lease period and
should therefore not be seen as income. We do however recommend that you record the appropriate deposit amount in
column K on the Lessee sheet for recordkeeping purposes.
Any amounts that are deducted from the deposit amount at the end of the lease period and spent on repairs & maintenance
should be recorded on the Income sheet and offset against the cost of the repairs by allocating the income transaction to the
Repairs & Maintenance allocation code.
Property Management Fees
If a property management company or agent is used to manage the property, the fees that are paid or retained by the entity
should be allocated to this code. As we mentioned under the Rent Income section, the gross rent income should be recorded
on the Income sheet and the property management fees should be recorded on the Expenses sheet and allocated to this
code.
Rates
The rates that are paid to the local city or town council should be recorded on the Expenses sheet and allocated to this code.
Levies
The levies that are paid to the appropriate body corporate or management company should be recorded on the Expenses
sheet and allocated to this code.
Repairs & Maintenance
All repairs and maintenance costs should be recorded on the Expenses sheet and allocated to one of the repairs &
maintenance allocation codes. We have created 5 allocation codes for repairs & maintenance costs which enable users to
analyze these costs based on the pre-defined allocation codes.
Note: All 5 default allocation codes are grouped together on the annual cash flow report but are included separately on the
monthly cash flow report. The monthly report should therefore be used to analyze these costs.
The repairs & maintenance costs that are recovered from the lessee's deposit at the end of the lease period should be
recorded as a transaction on the Income sheet. The deposit that is received from the lessee at the start of the lease period
should not be recorded as income because it needs to be repaid at the end of the lease period, but if an amount is deducted
based on the repairs that are required at the end of the lease period, the amount of the deduction should be recorded as
income and allocated to the Repairs & Maintenance allocation code. The difference between the amount that is recovered
from the lessee and the amount paid will then be reflected as a cash outflow on the annual and monthly cash flow reports.
Insurance
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Instructions
The monthly insurance premiums paid to an insurance company should be recorded as a transaction on the Expenses sheet
and allocated to this code. If the insurance premiums are included on the bond statement and therefore form part of the
monthly bond repayments, the insurance premiums don't need to be recorded separately. The cash outflow relating to the
insurance premiums will be included in the bond repayments on the annual and monthly cash flow reports.
Operational Costs
All operational costs should be recorded on the Expenses sheet and allocated to one of the operational cost allocation codes.
We have created 7 allocation codes for operational costs which enable users to analyze these costs based on the pre-
defined codes.
Note: All 7 default allocation codes are grouped together on the annual cash flow report but are included separately on the
monthly cash flow report. The monthly report should therefore be used to analyze operational costs.
Operational costs are not usually paid by the lessor but we have included these allocation codes to enable lessors that do
pay any of these costs on behalf of the lessee to record the transactions relating to these costs. If any of these costs are
recovered from the lessee, the amounts that are received from the lessee should be recorded on the Income sheet and
allocated to the appropriate operational cost allocation code (use the same allocation code that is used when recording the
costs on the Expenses sheet).
Income Tax
The annual income tax amounts that relate to each property should be recorded as a transaction on either the Income
(taxable loss amount) or Expenses (taxable income amount) sheets and allocated to this code.
The template contains an auto calculate feature for income tax purposes which can be activated by selecting the checkbox in
cell B32 on the Lessor sheet. If the checkbox is selected, no income tax transactions need to be recorded on the Income or
Expenses sheets and the income tax amounts on the annual and monthly cash flow reports will be calculated automatically.
It is however important to note that it is practically impossible to automatically calculate an income tax amount that is 100%
accurate for all annual periods, especially if the property owner is an individual. The income tax rates for individuals are
determined based on a sliding income tax scale and is influenced by the income that the individual earns from other sources
during each year of assessment. The income tax calculation for corporate entities and trusts is simpler because these entities
are taxed based on a fixed income tax rate, but the calculations for all annual periods may also not be 100% accurate if the
corporate tax rates are amended during the investment period.
We believe that our auto calculate feature calculates income tax amounts that are reasonably accurate but if you want to
include income tax amounts in the template that are 100% accurate, the income tax calculations need to be performed
manually at the end of each tax assessment year and a transaction needs to be recorded on either the Income or Expenses
sheet and allocated to the income tax allocation code.
Note: Our Property Income Tax Calculation template can be used to calculate an accurate income tax amount for each
individual property. If you use the template to calculate the appropriate income tax amounts and record the calculated
amounts as income tax transactions, your calculations should be 100% accurate.
Note: The auto income tax calculation checkbox in cell B32 on the Lessor sheet needs to be deselected before the income
tax transactions that are manually recorded are included in the annual and monthly cash flow report. This checkbox can also
be deselected if you don't want to include income tax amounts in the template calculations.
The annual taxable income or loss on a property investment is calculated by deducting all the operational expenses and
interest from the rent income for the period. The operational expenses consist of property management fees, rates, levies,
insurance premiums, repairs & maintenance costs and operational costs.
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Instructions
The annual interest amounts are calculated by deducting the capital amount that was repaid during the year from the total
bond repayments. The capital repayments are calculated by deducting the outstanding bond amount at the end of the period
from the outstanding bond amount at the beginning of the period.
The annual income tax amounts are calculated by multiplying the taxable income or loss for the year by the effective income
tax percentage that is specified in cell C28 on the Lessor sheet. If the calculation results in an income tax amount being
payable, the amount is included as a cash outflow (negative value) on the cash flow reports and if the calculation results in an
income tax amount being refundable, the amount is included as a cash inflow (positive amount). Note that income tax refunds
will simply be offset against an entity's other income tax obligations and therefore do not actually represent an amount that
will be received from SARS.
Bond Repayments
All bond repayments should be recorded on the Expenses sheet and allocated to this code. This includes both the required
monthly bond repayments and any ad hoc bond repayments that are effected.
Withdrawals from an access bond or funds that are received after obtaining further financing should be recorded on the
Income sheet and also allocated to the Bond Repayment allocation code.
Selling Price
When a property is sold, the selling price should be recorded on the Income sheet and allocated to this code. The selling
price that is recorded is included in the cash flow reports and in column N on the PropSetup sheet. If a property is sold and
the status of the property in column F on the PropSetup sheet is changed to "Sold", but the selling price is not recorded on
the Income sheet, the appropriate cell in column N will be highlighted in red. The highlighting will only be removed once the
selling price has been recorded on the Income sheet.
If the property owner is registered for VAT purposes, the gross selling price should be recorded on the Income sheet and the
output VAT amount that is payable to SARS should be recorded on the Expenses sheet and allocated to the Selling Price
allocation code. The selling price excluding VAT is then included in the cash flow reports.
Selling Costs
All the selling costs that are incurred when a property is sold should be recorded on the Expenses sheet and allocated to this
code. Selling costs mainly consist of agents commission but can also include any other marketing or sales related costs that
are incurred during the sale of a property.
Capital Gains Tax
If a capital gain is realised when a property is sold, the capital gains tax amount should be recorded on the Expenses sheet
and allocated to this account code. A transaction does not need to be recorded if the sale of the property results in a capital
loss.
Note: Our Capital Gains Tax Calculation template can be used to calculate an accurate capital gains tax amount for each
property that is sold. The template also includes comprehensive guidance on capital gains tax calculations.
The capital gain or loss should basically be calculated by deducting the sum of the property purchase price, transfer costs,
renovation costs and selling costs from the selling price of the property (excluding VAT if the property owner is VAT
registered). This amount is then included in the property owner's income tax calculation for the tax assessment year in which
the property is sold after applying the appropriate capital gains tax inclusion rate. The capital gains tax amount is therefore
calculated based on the effective income tax rate for the particular year of assessment.
Note: Specific capital gains tax exclusions exist for primary residences which are not covered in this template.
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Instructions
Outstanding Bond Amount
The bond settlement amount should be entered on the Expenses sheet and allocated to this code. This amount is equal to
the outstanding capital balance of the bond on the date of the sale.
Bond Cancellation Fee
If a bond cancellation fee is incurred because the property owner did not give sufficient notice of the intention to cancel the
bond, the fee should be entered on the Expenses sheet and allocated to this code.
Recording Property Income
All property income transactions should be entered on the Income sheet. All the columns with yellow column headings
require user input and the column with a light blue column heading contains a formula that is automatically copied for all the
new transactions that are recorded on this sheet.
Invoice Number
An invoice number needs to be entered in column A. This number is used as a transaction reference for including the invoice
details on the Invoice sheet. Invoice numbers can be in any alphanumerical format and a default invoice format is provided
for this purpose. If a tax invoice is not required for any particular transaction, you can enter an alternative reference number
or description in column A.
Invoice Date
The invoice date should be entered in column B. The invoice date of rent invoices should be the date on which the rent is due
which is usually the first day of the appropriate month.
Property Code
The appropriate property code should be selected from the list box in column C. All the property codes that have been
created on the PropSetup sheet are included in the list box.
Note: If an invalid property code is copied into this column, the code will be highlighted in orange and the highlighting will only
be removed if the invalid code is replaced by a valid code.
Lessee Code
The appropriate lessee code should be selected from the list box in column D. All the lessee codes that have been created
on the Lessee sheet are included in the list box. If an income transaction other than a rent income transaction is recorded,
the lessee code can be left blank.
Note: If an invalid lessee code is copied into this column, the code will be highlighted in orange and the highlighting will only
Note: The list boxes in the Lessee Code column include both the lessee code and the lessee name. We have added both
because it will make it easier to select the correct lessee code. Excel does not allow data from two columns to be included in
a list box and we have therefore implemented a work around in order to accomplish this - a data validation error may however
be displayed in the cells that contain the list boxes, but this error can safely be ignored and has no effect on the template
calculations.
Allocation Code
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Instructions
The appropriate allocation code should be selected from the list box in column E. All the allocation codes that are listed on
the Allocation sheet are included in the list box.
Note: If an invalid allocation code is copied into this column, the code will be highlighted in orange and the highlighting will
only be removed if the invalid code is replaced by a valid code.
Note: The list boxes in the Allocation Code column include both the allocation code and the description. We have added both
because it will make it easier to select the correct allocation code. Excel does not allow data from two columns to be included
in a list box and we have therefore implemented a work around in order to accomplish this - a data validation error may
however be displayed in the cells that contain the list boxes, but this error can safely be ignored and has no effect on the
template calculations.
Transaction Reference
An appropriate transaction reference that indicates the source of the transaction should be entered in column F.
Transaction Description
An appropriate description of the transaction should be entered in column G. This description is also included in the detail
section of the tax invoice on the Invoice sheet.
Transaction Amount
The transaction amount (inclusive of VAT) should be entered in column H. All income amounts should be entered as positive
amounts - if you want to enter a negative amount in order to record a cash outflow, the transaction should be entered on the
Expenses sheet instead.
Payment Date
The date on which the invoice is paid should be entered in column I. If an invoice is still outstanding, the appropriate cell in
this column should be left blank. Note that all income transactions are included on the cash flow reports based on the date
that is entered in this column. If a payment date is not entered for a particular transaction, the transaction will not be included
in the cash flow reports. Rent amounts are therefore only included on the cash flow reports when the amounts have been
received from the lessee.
Note: The payment trend of a particular lessee can be reviewed by using the Auto Filter feature to select the appropriate
lessee code and reviewing the dates on which payments are received from the lessee. The Auto Filter feature can be
accessed by clicking the selection arrow next to the appropriate column heading.
Allocation Description
This column contains a formula that results in a description of the allocation code that is selected in column E being displayed
in column J. The allocation description has been added to the sheet in order to enable users to review the accuracy of the
allocation codes that are selected.
General
Note: The contents of the Income sheet have been included in an Excel table. Additional transactions can be added to the
table by simply entering a new transaction in the first blank cell directly below the table in column A - the Excel table will
automatically be extended to include the new code and the formula in the column with a light blue column heading will also
be included in the new row. The most efficient method of entering income transactions is by copying a similar transaction and
then simply editing the transaction details where required.
Tax Invoice
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Instructions
The tax invoice on the Invoice sheet is automatically compiled based on the information that is entered on the Lessor, Lessee
and Income sheets. The only user input that is required on the Invoice sheet is entering the appropriate tax invoice number in
cell H6.
The lessor name, address, contact number, fax number, e-mail address and VAT registration number in the cell range from
cell B5 to cell B15 is included based on the information entered on the Lessor sheet. The banking details included in the cell
range from cell B35 to cell B39 are based on the banking details that are entered on the Lessor sheet.
The lessee code in cell G10 is included based on the lessee code that is selected in column D on the Income sheet for the
particular invoice. The lessee name and address in the cell range from cell G11 to G15 and the lessee VAT code in cell H17
are included on the invoice based on the lessee code in cell G10 and the information that is entered on the Lessee sheet for
the particular lessee.
The invoice date in cell H7 is included on the invoice based on the date that is entered in column B on the Income sheet for
the invoice number that is entered in cell H6. The invoice due date is the same as the invoice date but you can amend the
formula in cell H8 if a different invoice due date should be displayed in this cell.
The opening balance in cell H21 is calculated based on all the invoices for the lessee that are dated on or before the invoice
date in cell H7 and have either been paid after the invoice date in cell H7 or are still outstanding. Note that the payment date
column on the Income sheet contains a blank cell if an invoice is still outstanding.
A maximum number of 10 lines can be included on each tax invoice. Each of the lines that need to be included on the tax
invoice should be entered in a separate row on the Income sheet. The transaction description in column G on the Income
sheet is included under the Description heading on the tax invoice and the transaction amount that is entered in column H on
the Income sheet is included in column H on the tax invoice.
If the lessor is VAT registered and the checkbox in cell B16 on the Lessor sheet is therefore selected, a VAT amount is
calculated on each of the amounts that are included in the tax invoice and displayed in column G. The VAT exclusive
amounts are included in column F on the tax invoice.
The total VAT amount on all the lines that are included on the tax invoice is displayed in cell G32 and the total invoice amount
is displayed in cell H33. The age analysis at the bottom of the tax invoice is calculated based on the invoice date in cell H7.
Note: You can customize the tax invoice by including your own artwork or logo at the top of the invoice (if required) and by
changing the formatting of the cells that are included on the Invoice sheet.
Note: The Invoice sheet should be converted to a PDF file format before e-mailing the tax invoice to the appropriate lessee.
Users are not allowed to e-mail the template to any third parties because the distribution of the template outside the scope of
a single user license will result in a copyright infringement.
Recording Expenses
All expense transactions should be entered on the Expenses sheet. All the columns with yellow column headings require user
input and the columns with a light blue column heading contain formulas that are automatically copied for all the new
transactions that are recorded on this sheet.
Transaction Date
The payment date of all expense transactions should be entered in column A. The expenses are included on the cash flow
reports based on the date that is entered in this column and the date on which the expense is paid should therefore be used.
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Property Code
The appropriate property code should be selected from the list box in column B. All the property codes that have been
created on the PropSetup sheet are included in the list box.
Note: If an invalid property code is copied into this column, the code will be highlighted in orange and the highlighting will only
Supplier
The name of the appropriate supplier should be entered in column C.
Allocation Code
The appropriate allocation code should be selected from the list box in column D. All the allocation codes that are listed on
the Allocation sheet are included in the list box.
Note: If an invalid allocation code is copied into this column, the code will be highlighted in orange and the highlighting will
only be removed if the invalid code is replaced by a valid code.
Note: The list boxes in the Allocation Code column include both the allocation code and the description. We have added both
because it will make it easier to select the correct allocation code. Excel does not allow data from two columns to be included
in a list box and we have therefore implemented a work around in order to accomplish this - a data validation error may
however be displayed in the cells that contain the list boxes, but this error can safely be ignored and has no effect on the
template calculations.
Transaction Reference
A transaction reference number that enables the user to trace the transaction back to the supporting documents should be
entered in column E.
Transaction Description
A description of the transaction should be entered in column F.
Transaction Amount
The transaction amount (inclusive of VAT) should be entered in column G. All expense amounts should be entered as
positive amounts - if you want to enter a negative amount in order to record a cash inflow, the transaction should be entered
on the Income sheet instead.
Allocation Description
This column contains a formula that results in a description of the allocation code that is selected in column D being displayed
in column H. The allocation description has been added to the sheet in order to enable users to review the accuracy of the
allocation codes that are selected.
Property Status
The formula that is included in this column displays the property status of the property code that is selected in column B. The
property status is used in the capital gains tax calculation on the Results sheet.
Date Sold
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The formula in this column displays the selling date of a property if the property has been sold, the property status on the
PropSetup sheet has been changed to "Sold" and a selling date has been entered in column H on the PropSetup sheet. The
selling date is also used in the capital gains tax calculation that is included on the Results sheet.
Note: If a property has not been sold, the cells in column J will contain no visible value and it may therefore appear as if the
cells in column J are blank. The formula in this column however needs to be copied for all the transactions that are entered
on this sheet and it may result in inaccurate calculations if the formula is omitted from some cells. Users therefore need to
ensure that this formula is always copied to all the appropriate cells.
General
Note: The contents of the Expenses sheet have been included in an Excel table. Additional expenses can be added to the
table by simply entering a new transaction in the first blank cell directly below the table in column A - the Excel table will
automatically be extended to include the new transaction and all the formulas in the columns with light blue column headings
will also be included in the new row. The most efficient method of entering expense transactions is by copying a similar
transaction and then simply editing the transaction details where required.
Annual Market Values
The template enables users to measure the property investment return on an annual and cumulative basis. In order to
calculate the annual investment return, users are required to enter the annual market value of all the properties that are
included in the template on the Market sheet.
The Market sheet includes input cells for all the annual market values from 2000 to 2050. After creating a property code on
the PropSetup sheet, the code will automatically be included in row 7 on the Market sheet. All the input cells that require a
market value will automatically be indicated with a yellow cell background. Users should only enter values in the cells with a
yellow cell background.
Note: The annual periods that require a market value to be entered are determined based on the effective date that is
entered for each property in column E on the PropSetup sheet and the current system date. If you enter a value into a cell
that does not require a value, the appropriate cell will be highlighted in orange and the highlighting will only be removed if the
value is replaced by a nil value.
Note: It is imperative that you enter all the required market values in the appropriate cells on the Market sheet
otherwise the investment return calculations on the Results sheet will not be accurate!
The formulas and conditional formatting that are used to display the input cells that require user input have only been added
to the first 10 input columns on the Market sheet. Once you've added more than 10 properties to the PropSetup sheet, you
therefore have to copy the last input column and paste the entire column into the number of additional columns that you
require. The formulas and conditional formatting features will then be added to the additional columns and this process can
be repeated in order to include as many properties as you require.
The sequence in which the property codes are displayed on the Market sheet should not be amended. As we mentioned
before, the sequence is based on the sequence in which the property codes are created on the PropSetup sheet. If you
change the sequence of property codes on the PropSetup sheet, the market values that are entered on the Market sheet will
be inaccurate.
The market values that are entered on the Market sheet are used in a number of template calculations and included in row 4
on the CashFlow sheet and row 9 on the Results sheet. All the annual market values should be based on the estimated
selling price that can be achieved if the property is sold at the end of the particular year. Users can enter their own estimates
or obtain a valuation from an estate agent for this purpose.
Annual Outstanding Bond Amounts
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Instructions
The outstanding bond amount at the end of each annual period should be entered on the Bond sheet. This sheet is compiled
in the same way as the Market sheet and the principles that need to be applied in order to record the annual market values
should also be applied to the Bond sheet.
Note: It is imperative that you enter all the required outstanding bond balances in the appropriate cells on the Bond
sheet otherwise the investment return calculations on the Results sheet will not be accurate!
The monthly periods that are included on the Market and Bond sheets are determined based on the year end period that is
specified on the Lessor sheet. The outstanding bond balance at the end of the period that is indicated in column A should be
entered in the appropriate input cells and can be obtained from the statements that are received from the appropriate
financial institution. The outstanding bond amounts that are entered on the Bond sheet are used in a number of template
calculations and included in row 5 on the CashFlow sheet and row 9 on the Results sheet.
Note: The monthly periods that are listed in column A are year end periods and the last period that requires user input will
always be the year end in which the current date falls into. Through the course of the current year, you can enter the current
outstanding bond balance on the Bond sheet as long as all bond repayments have been recorded on the Expenses sheet.
The current market value should also be recorded in the last input cell on the Market sheet so that an annual investment
return can be calculated for the current year.
After a bond has been repaid in full, you don't have to enter any values for the particular property code on the Bond sheet. As
we mentioned before, the bond status of a property should be changed to "Settled" in column G on the PropSetup sheet
when a bond has been repaid in full.
Annual Cash Flow Report
The annual cash flow report on the CashFlow sheet is automatically calculated from the transactions that are entered on the
Income and Expenses sheets. The only user input that is required on this sheet is selecting the appropriate property code
from the list box in cell E2.
Note: The annual cash flow report can be compiled for any individual property by selecting the property code from the list box
in cell E2 or an annual cash flow report for the entire property portfolio can be compiled by simply clearing the contents of the
list box (by selecting cell E2 and pressing the Delete key on the keyboard). If an individual property is selected, the property
address is displayed next to the property code and if the portfolio is selected, the text "All Properties" is displayed next to cell
E2.
The report includes a 20 year period and the annual periods that are included in row 9 are based on the effective date that is
specified for the particular property in column E on the PropSetup sheet and the year end period that is specified in cell C34
on the Lessor sheet.
The property market values that are included in row 4 are entered on the Market sheet and the outstanding bond amounts
that are included in row 5 are entered on the Bond sheet. The equity 1 balance is calculated by deducting the outstanding
bond amounts from the property market values and indicates the equity that is available in the property investment or portfolio
before taking disposal costs into account.
All the amounts included on the annual cash flow report are calculated based on the transactions that are recorded on the
Income and Expenses sheets and allocated to the pre-defined allocation codes that are listed in column A.
Note: The only exception is the income tax amounts - if the checkbox in cell B32 on the Lessor sheet is selected, the income
tax amounts are calculated automatically but if the checkbox is cleared, the income tax amounts are also calculated based on
the income tax transactions that are recorded on the Income and Expenses sheets.
Note: The monthly cash flow report on the Monthly sheet can be used to view a monthly summary for any of the periods that
are included in the annual cash flow report.
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Property Investment Return Analysis
A comprehensive property investment return analysis is included on the Results sheet. All the calculations on this sheet are
automated and based on the transactions that are entered on the Income and Expenses sheets and the default values that
are specified on the Lessor sheet. No user input is required on the Results sheet.
Note: The investment return analysis can be compiled for an individual property by selecting the appropriate property code
from the list box in cell E2 on the CashFlow sheet. The analysis can also be compiled for the entire property portfolio by
simply clearing the contents of this list box. The property code that is selected on the CashFlow sheet is included in cell D2
on the Results sheet.
Note: The address of the property that has been selected on the CashFlow sheet is displayed next to cell D2. If the entire
property portfolio is selected, the text "All Properties" is displayed next to cell D2.
The annual periods that are included on the investment return analysis are determined based on the effective date of the
property that is specified in column E on the PropSetup sheet and the year end period that is specified in cell C34 on the
Lessor sheet. If the entire portfolio is selected, the annual periods are based on the first property effective date and the year
end period.
The following investment return calculations are included on the Results sheet:
Net Cash Flow - Annual
The annual net cash flow is calculated on the CashFlow sheet and includes all the transactions that are recorded on the
Income and Expenses sheets. The calculation therefore reflects the annual net cash flow surplus or shortfall resulting from
the transactions that are recorded for the selected property or portfolio. This calculation is an important indicator of whether a
particular property investment or portfolio is cash flow positive.
Net Cash Flow - Cumulative
The cumulative net cash flow is a cumulative total of the annual net cash flows in row 5. This calculation indicates the amount
of cash that has been contributed by the owner in order to meet the cash flow requirements of the property investment or
portfolio (negative amount) or the amount of cash that has been generated by the property investment or portfolio (positive
amount).
Equity 1 Calculation
The equity 1 amounts in row 10 are calculated by deducting the outstanding bond amounts at the end of each annual period
from the market value of the property or portfolio at the end of each annual period. The outstanding bond amounts and
market values at the end of each annual period are entered on the Bond and Market sheets respectively. Portfolio balances
are calculated as the total of all the outstanding bond amounts and market values on the Bond and Market sheets at the end
of the particular reporting period.
Note: Our equity 1 amount is commonly referred to as the equity that is available in a property investment or portfolio. We
don't agree with this methodology because we believe that the estimated disposal cost should be deducted when determining
the equity that is available in a property investment or portfolio, otherwise the amount of equity that is realised when the
property or portfolio is sold will be less than expected.
Equity Balance Calculation
The equity balance indicates the amount of equity that is available in the property investment or portfolio after taking the
estimated cost of disposal into account. Disposal costs consist of output VAT (if applicable), selling costs and capital gains
tax.
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VAT
The VAT calculation in row 11 only contains values if the lessor is registered for VAT purposes and the checkbox in cell B16
on the Lessor sheet has been selected. The amounts that are calculated equal the output VAT that needs to be paid to SARS
if the property or portfolio is sold. By including the output VAT amounts in the annual equity calculation, a provision is
effectively raised for the VAT amount that will be payable if the property or portfolio is sold and the provision is therefore also
taken into account in calculating the equity that is available in the property investment or portfolio.
Note: This template does not incorporate comprehensive accounting for VAT purposes. Only the cash flow effects of the
acquisition and disposal of a property investment is incorporated into the template because the cash flow effects of these two
transactions have the most significant impact on the calculation of the actual investment return. The template therefore does
not include the functionality to account for periodic VAT returns and the VAT effect on rent income and operational costs is
therefore ignored.
Selling Costs
The selling costs in row 12 are calculated by multiplying the agents commission percentage specified in cell C27 on the
Lessor sheet by the market value in row 8. By including the selling cost amounts in the annual equity calculation, a provision
is effectively raised for the selling costs incurred when the property or portfolio is sold and the provision is therefore also
taken into account in calculating the equity that is available in the property investment or portfolio.
Capital Gains Tax
An annual provision for capital gains tax is calculated by deducting the property purchase price, transfer costs, renovation
costs and selling costs from the market value in row 8 and multiplying the result by the appropriate effective capital gains tax
percentage (calculated in cell C30 on the Lessor sheet). By including the capital gains tax amount in the annual equity
calculation, a provision is effectively raised for the capital gains tax that will be payable when the property or portfolio is sold
and the provision is therefore also taken into account in calculating the equity that is available in the property investment or
portfolio.
The appropriate property purchase prices are entered in column C on the PropSetup sheet, the transfer and renovation costs
are calculated based on the transactions that are entered on the Income and Expenses sheets and the selling costs are
calculated in row 12.
Note: If the sale of the property or portfolio will result in a capital loss, no capital gains tax will be payable and the capital
gains tax amount for the appropriate period will be nil. Capital losses on individual properties are offset against the capital
gains on other property investments in the portfolio calculation.
Note: Our Capital Gains Tax Calculation template can be used to calculate an accurate capital gains tax amount for each
individual property or the entire property portfolio. The template also includes comprehensive guidance on capital gains tax
calculations.
Equity Balance
The equity balance is calculated by deducting all the provisions for disposal costs from the equity 1 balance. The balance that
is calculated therefore already takes the disposal costs into account and should therefore be an accurate estimation of the
equity that can be realised if the property or portfolio is sold.
Equity Contributed (during the year)
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The equity that is contributed during the year is equal to the annual net cash flow amount. If a property investment results in a
monthly cash shortfall, the property investor needs to contribute equity on a monthly basis in order to cover this shortfall.
These contributions form part of the equity balance at the end of each annual period. Similarly, if the property investment is
cash flow positive, the positive cash flow amount is effectively returned to the property investor on a monthly basis and
therefore needs to be deducted from the equity balance.
Note: This is an important characteristic of residential property investments which is often ignored by property investors.
Many property investors are so satisfied by the amount of equity that is available in their property investments that they don't
realise that a significant portion of the equity may have been contributed by them in the form of monthly capital injections and
therefore does not form part of the profit that is realised from the investment.
Annual Net Profit (Loss)
The calculation of the annual net profit or loss on a property investment could be quite complex, especially in a
comprehensive and accurate actual investment return calculation template like ours. The calculation consists of a number of
components. In principle, the annual profit or loss is determined by deducting the operational costs, interest and taxation from
the rental income but you also need to take the increase or decrease in the market value (unrealised profit or loss) and the
movement in the disposal cost provisions into account.
Note: A simpler method of calculating the annual net profit or loss is by deducting the equity contributed during the year (or
the annual net cash flow) from the closing equity balance and then deducting the opening equity balance from this amount.
The calculation result is the annual net profit or loss on the property investment.
Note: The movement in the equity balance between two annual periods can be split into two components - the equity
contributed during the year and the annual net profit or loss. If you therefore deduct the equity opening balance from the
equity closing balance, the calculation result will equal the total of the amounts in row 15 and row 16 in the appropriate
column.
Cumulative Profit (Loss)
The cumulative profit or loss is quite simply the sum of all the net profits or losses up to the end of the particular period. The
cumulative totals in row 17 are calculated from the annual net profit or loss amounts in row 16.
Note: The cumulative profit or loss totals in row 17 will differ from the equity balances in row 14 because the cumulative
equity contributions (the cumulative total of the amounts in row 15) also form part of the equity balances.
Annual Capital Growth
The annual capital growth rates in row 19 are calculated based on the market values in row 8.
Average Annual Capital Growth
The average annual capital growth rates are the average overall capital growth that has been realised on a property
investment or portfolio. This growth rate is calculated based on the property or portfolio market value at the end of the
particular period (included in row 8), the sum of the appropriate property purchase prices and the investment period that has
elapsed.
Net Present Value (NPV)
The NPV indicates whether the return on investment exceeds the required return on investment that is specified by the user.
A positive NPV indicates that the investment return is higher than the required return on investment and a negative NPV
indicates that the investment return is below the required return on investment.
Page 23 of 53
Instructions
The NPV calculation is based on the annual cash flow totals in row 5 and the discount rate that is specified in cell C31 on the
Lessor sheet. The discount rate is applied to the annual cash flow totals to calculate a present value for all the annual cash
flows. The NPV is equal to the sum of all the annual cash flow present values.
The NPV calculation in this template can be used to calculate the investment return after inflation by simply specifying the
average annual inflation rate as the discount rate. Alternatively, the NPV calculation can also be used to determine whether
the investment return exceeds a required return on investment by simply specifying the required annual return on investment
as the discount rate.
Note: The annual NPV values are calculated based on the assumption that the property or portfolio is sold at the end of an
annual period. This means that the market value and disposal costs are also included in the calculation.
Internal Rate of Return (IRR)
The IRR calculation indicates the average annual cumulative return on investment for the property or portfolio. The
calculation is based on the annual cash flow totals in row 5. The IRR of a property investment takes the effect of all cash flow
items into account and therefore provides an extremely useful indication of the overall profitability of a property investment or
portfolio.
The IRR calculation is frequently used in conjunction with the NPV calculation because the one calculation provides an
indication of the annual return on investment on a cumulative basis (IRR) while the other calculation provides an indication of
whether the investment return exceeds the required investment return (NPV). The IRR calculation result is an annual
investment return percentage, while the NPV calculation indicates the amount by which the investment return exceeds or falls
short of the required investment return. The IRR can also be described as the annual investment return that results in a NPV
of nil.
Note: The annual IRR values are calculated based on the assumption that the property or portfolio is sold at the end of an
annual period. This means that the market value and disposal costs are also included in the calculation.
Return on Equity
The IRR calculation provides the best indication of the overall or cumulative investment return of a property or portfolio, but it
is not that useful when you want to calculate the investment return that has been achieved during a specific annual period.
The movement in the overall IRR that is calculated does provide an indication of whether the investment return for a specific
period exceeds the cumulative investment return up to that point, but it is still not possible to determine what the return during
the particular annual period is.
Example: If the IRR at the end of year 3 is say 15.6% and the IRR at the end of year 4 is say 11.2%, the movement in the
IRR indicates that the investment return that is achieved during year 4 is less than the cumulative investment return up to the
end of year 3. The movement in the IRR does however not provide an indication of the actual investment return that is
achieved during year 4 or even if a loss has resulted during this particular period.
The return on equity ratio is calculated on an annual basis instead of a cumulative basis and therefore does provide an
indication of what the investment return is for a particular annual period. The return on equity ratio however does not provide
an indication of what the cumulative investment return is and the calculation should therefore be used in conjunction with the
IRR calculation.
The return on equity is calculated based on the net profit or loss for the period and the equity balance at the end of the
particular period. The net profit or loss for the period is calculated in row 16 and the equity balance is calculated in row 14 on
the Results sheet.
Rental Yields
Page 24 of 53
Instructions
The rental yield and net rental yield calculations in this template are based on the market value, property purchase price and
outstanding bond amount at the end of each annual period.
Market Value
The rental yield on the market value is calculated by dividing the rental income in row 14 on the CashFlow sheet by the
market value in row 8 on the Results sheet. The percentage that is calculated indicates what the gross income from leasing a
property is in relation to the market value of the property. This ratio can therefore be used to compare gross rentals of a
property to industry norms or other property investments.
Note: The rental income is calculated based on the transactions that are entered on the Income and Expenses sheets. If the
rental income has only been entered for a part of the year, the rental yields and net rental yields will not reflect the yields for
the full annual period. This factor should be taken into account when comparing the rental yields and net rental yields of each
annual period.
Property Purchase Price
The rental yield on the property purchase price is calculated by dividing the rental income in row 14 on the CashFlow sheet
by the property purchase prices that are specified in column C on the PropSetup sheet. The calculation provides an indication
of the initial rental yield that is achieved and the increase in yield during the investment period. Note that the yield should
increase because rent income typically escalates during the investment period.
Outstanding Bond Amount
The rental yield on the outstanding bond amount is calculated by dividing the rental income in row 14 on the CashFlow sheet
by the outstanding bond amount at the end of the particular period in row 9 on the Results sheet. The calculation can be
compared to the annual bond interest rate to determine whether the rental income is sufficient to cover the interest on the
bond.
Note: The rental income typically escalates during the investment period and the outstanding bond amount is reduced
through monthly bond repayments. The rental yield that is calculated on the outstanding bond amount should therefore
increase during the investment period and at some point in the investment period, the rental yield should exceed the bond
interest rate.
Net Rental Yields
The net rental yields are calculated on a similar basis as the rental yields, but instead of dividing only the rental income by the
appropriate market value, property purchase price or outstanding bond amount, the net rental income is divided by these
amounts. The net rental income is defined as the rental income after operational expenses and is calculated by deducting the
costs in row 15 to row 20 on the CashFlow sheet from the rent income in row 14.
Equity 1 / Market Value
This ratio expresses the equity 1 balance in row 10 as a percentage of the market value in row 8. It is an indication of the
equity (before taking disposal costs into account) that is available in the property investment or portfolio.
Disposal Cost %
This ratio expresses the disposal costs as a percentage of the market value in row 8. The disposal costs are defined as the
sum of the output VAT, selling costs and capital gains tax in row 11 to row 13.
Page 25 of 53
Instructions
Note: As we've mentioned before, we believe that it is more prudent and accurate to calculate an equity balance after taking
the provisions for disposal costs into account. We therefore recommend deducting the disposal cost % from the equity 1 /
market value ratio to determine the percentage equity that is available in the property investment or portfolio. The equity 1 /
market value ratio is however provided because we believe that this is the industry norm for calculating the equity percentage
ratio.
Outstanding Bond %
This ratio is calculated by dividing the outstanding bond amount at the end of the appropriate period in row 9 by the initial
bond amounts that are entered in column D on the PropSetup sheet. The ratio indicates the percentage capital that still
needs to be repaid on the appropriate bonds.
Cumulative Profit / Property Purchase Price
This ratio is calculated by dividing the cumulative profit in row 17 by the appropriate property purchase prices that are entered
in column C on the PropSetup sheet. This calculation has been added to the investment return analysis to provide an
indication of the profitability of the property investment or portfolio in relation to the initial purchase prices.
Monthly Cash Flow Report
The monthly cash flow report on the Monthly sheet can be used to view a monthly summary of the annual cash flow totals
that are included on the CashFlow sheet. The only user input that is required on this sheet is selecting the appropriate annual
reporting period from the list box in cell E2.
Note: The monthly report is automatically compiled based on the property code that is selected from the list box in cell E2 on
the CashFlow sheet. If the list box on this sheet has been cleared, the monthly cash flow report is compiled for the entire
property portfolio. The address of the individual property is displayed next to the property code in cell E3 when an individual
property is selected and the text "All Properties" is displayed if the entire property portfolio is included in the report.
All the calculations on the monthly cash flow report are based on the transactions that have been recorded on the Income
and Expenses sheets. The only exception is the income tax amount that is automatically calculated if the checkbox in cell
B32 on the Lessor sheet is selected. If an income tax amount is automatically calculated, the appropriate amount is included
in the last period on the monthly cash flow report.
Note: In some instances, the totals on the monthly cash flow report may not agree to the totals in the first period of the annual
cash flow report. This is because the first period on the annual cash flow report is calculated based on all the transactions
that have been entered on the Income and Expenses sheet and dated before the end of the first period. The monthly cash
flow report is however based on the actual transaction dates. A difference will therefore only occur if a transaction is dated
more than 1 year before the end of the first period on the annual cash flow report. This calculation difference only exists for
the first annual period on the annual cash flow report - the totals of all other periods should not differ between the annual and
monthly cash flow reports.
Support
If you experience any difficulty while using this template and you are not able to find the appropriate guidance in these
instructions, please e-mail us at support@propertyreality.co.za for assistance.
© Copyright
Page 26 of 53
Instructions
This template remains the intellectual property of www.propertyreality.co.za and is protected by international copyright laws.
Any publication or distribution of this template outside the scope of the permitted use of the template is expressly prohibited.
In terms of the permitted use of this template, only the distribution of the template to persons within the same organisation as
the registered user or persons outside the organisation who can reasonably be expected to require access to the template as
a direct result of the use of the template by the registered user is allowed. Subsequent distribution of the template by parties
outside of the organisation is however expressly prohibited and represents an infringement of international copyright laws.
Page 27 of 53
Property Investment | Buy to Let
Lessor Setup
© www.propertyreality.co.za
Lessor Name AN Example
Address:
Line 1 15 Mandela Drive
Line 2 Sandton
Line 3 Johannesburg
Line 4 1000 On this sheet:
This sheet includes information about the property owner and also requires the user to specify the
Contact Number 011 999 9999 default values that are used in calculating agents commission, income tax and capital gains tax
Fax Number 011 999 0000 provisions. The lessor (property owner) information that is entered on this sheet is automatically
E-mail lessor@mymail.co.za included on the tax invoice and users are also able to specify an accounting or tax year end period.
VAT Registered ✘ 0
VAT Number Not Registered
VAT Percentage 15.0%
Banking Details:
Bank FNB
Account Type Cheque Account
Branch Code 111-999
Account Number 1111 999 999
Default Values:
Agents Commission (incl. VAT) 5.75%
Effective Income Tax % 30.0%
Capital Gains Tax Inclusion % 40.0%
Effective Capital Gains Tax % 12.0%
Discount Rate 6.0%
Auto Calculate Income Tax ✘ 1
Year End February 4/30/2014 2/28/2015 10.00
Page 28 of 53
Lessee Setup
Address
Code Name ID Number Line 1 Line 2 Line 3 Line 4 VAT No Property Code Occupation Date Deposit Amount
LES01 P Lewis 700101 5999 990 30 Wilson Drive Sandton Johannesburg 0001 Not Registered WIL001 5/1/2014 9,000.00
LES02 M Davies 750601 5000 900 30 Wilson Drive Sandton Johannesburg 0001 Not Registered WIL001 8/1/2016 10,890.00
LES03 T Phillips 800401 3000 800 22 Smith Street Fourways Johannesburg 0001 Not Registered SMI002 10/1/2016 8,000.00
LES04 S Andrews 820709 6000 810 10 Charles Avenue Northcliff Johannesburg 0001 Not Registered CHA003 6/1/2019 21,000.00
On this sheet:
This sheet includes information about the lessees who rent properties from the
owner. The information that is entered on this sheet are included on the tax
invoice and used to populate the lessee list boxes on the Income sheet.
Page 29 of 53
Property Setup
© www.propertyreality.co.za 3,450,000 1,982,779 1,467,221 (273,293) 1,193,929 860,000 32,472
Profit /
Property Code Property Address Purchase Price Bond Amount Effective Date Property Status Bond Status Date Sold Market Value Bond Balance Equity 1 Disposal Cost Equity Balance Selling Price (Loss)
WIL001 30 Wilson Drive, Sandton, Johannesburg 1,000,000.00 900,000.00 4/20/2014 Active Active 1,650,000 737,125 912,875 (156,420) 756,455 - -
SMI002 22 Smith Street, Fourways, Johannesburg 640,000.00 640,000.00 9/15/2016 Sold Settled 9/18/2018 - - - - - 860,000 32,472
CHA003 10 Charles Avenue, Northcliff, Johannesburg 1,500,000.00 1,300,000.00 6/1/2019 Active Active 1,800,000 1,245,653 554,347 (116,873) 437,474 - -
On this sheet:
This sheet requires users to create a unique property code for each buy to let property investment. The property purchase price, initial bond amount
and the effective property date also need to be specified on this sheet. When a property is sold, the property status needs to be amended and a selling
date needs to be entered. A calculation of the equity that is available in each property investment as well as the profit or loss on the sale of property
investments is also included on this sheet. The columns with a yellow column heading require user input and the columns with a light blue column
heading contain formulas that are automatically copied for all the new properties that are added to this sheet.
Page 30 of 53
Allocation Setup
Code Description
A1000 Transfer Costs
A1100 Bond Costs
A1200 Deposit Amount
A1300 Renovation Costs
A2000 Rent Income
On this sheet:
A3000 Property Management Fees
This sheet includes all the pre-defined allocation codes that are
A3100 Rates
used to compile the comprehensive monthly and annual cash flow
A3200 Levies
reports. No user input is required on this sheet.
A3301 R&M - Building
A3302 R&M - Electrical
A3303 R&M - Plumbing
A3304 R&M - Pool
A3305 R&M - Other
A3400 Insurance
A3501 Operational - Water
A3502 Operational - Electricity
A3503 Operational - Refuse Removal
A3504 Operational - Sanitation
A3505 Operational - Gardening
A3506 Operational - Housekeeping
A3507 Operational - Other
A4000 Income Tax
A5000 Bond Repayments
A6000 Selling Price
A6100 Selling Costs
A6200 Capital Gains Tax
A6300 Outstanding Bond Amount
A6400 Bond Cancellation Fee
Page 31 of 53
Income Transactions
Invoice Allocation Transaction Transaction Transaction
Number Invoice Date Property Code Lessee Code Code Reference Description Amount Payment Date Allocation Description
IN0001 5/1/2014 WIL001 LES01 A2000 Invoice Rent - May 2013 6,000.00 5/2/2014 Rent Income
IN0002 6/1/2014 WIL001 LES01 A2000 Invoice Rent - June 2013 6,000.00 6/3/2014 Rent Income
IN0003 7/1/2014 WIL001 LES01 A2000 Invoice Rent - July 2013 6,000.00 7/1/2014 Rent Income
IN0004 8/1/2014 WIL001 LES01 A2000 Invoice Rent - August 2013 6,000.00 8/4/2014 Rent Income
IN0005 9/1/2014 WIL001 LES01 A2000 Invoice Rent - September 2013 6,000.00 9/1/2014 Rent Income
IN0006 10/1/2014 WIL001 LES01 A2000 Invoice Rent - October 2013 6,000.00 10/1/2014 Rent Income
IN0007 11/1/2014 WIL001 LES01 A2000 Invoice Rent - November 2013 6,000.00 11/2/2014 Rent Income
IN0008 12/1/2014 WIL001 LES01 On thisInvoice
A2000 sheet: Rent - December 2013 6,000.00 12/1/2014 Rent Income
IN0009 All property income
1/1/2015 WIL001 transactions need to be A2000
LES01 entered onInvoice
this sheet. Income transactions
Rent consist of mainly the
- January 2014 6,000.00 1/1/2015 Rent Income
IN0010 monthly rent WIL001
2/1/2015 income but can also
LES01 include property
A2000 sales, input VAT refunds
Invoice Rent - and access
February 2014bond withdrawals. 6,000.00 2/3/2015 Rent Income
IN0011 The columns WIL001
3/1/2015 with a yellow column
LES01 headingA2000
require user input and theRent
Invoice column
- Marchwith
2014a light blue column 6,000.00 3/1/2015 Rent Income
IN0012 heading contains
4/1/2015 a formula thatLES01
WIL001 is automatically copiedInvoice
A2000 for all new transactions that 2014
Rent - April are entered on this sheet. 6,000.00 4/2/2015 Rent Income
IN0020 12/1/2015 WIL001 LES01 A2000 Invoice Rent - December 2014 6,600.00 12/1/2015 Rent Income
IN0021 1/1/2016 WIL001 LES01 A2000 Invoice Rent - January 2015 6,600.00 1/1/2016 Rent Income
IN0022 2/1/2016 WIL001 LES01 A2000 Invoice Rent - February 2015 6,600.00 2/1/2016 Rent Income
IN0023 3/1/2016 WIL001 LES01 A2000 Invoice Rent - March 2015 6,600.00 3/1/2016 Rent Income
IN0024 4/1/2016 WIL001 LES01 A2000 Invoice Rent - April 2015 6,600.00 4/2/2016 Rent Income
IN0031 10/1/2016 SMI002 LES03 A2000 Invoice Rent - October 2015 4,000.00 10/1/2016 Rent Income
IN0033 11/1/2016 SMI002 LES03 A2000 Invoice Rent - November 2015 4,000.00 11/1/2016 Rent Income
IN0035 12/1/2016 SMI002 LES03 A2000 Invoice Rent - December 2015 4,000.00 12/1/2016 Rent Income
IN0037 1/1/2017 SMI002 LES03 A2000 Invoice Rent - January 2016 4,000.00 1/1/2017 Rent Income
IN0039 2/1/2017 SMI002 LES03 A2000 Invoice Rent - February 2016 4,000.00 2/1/2017 Rent Income
IN0041 3/1/2017 SMI002 LES03 A2000 Invoice Rent - March 2016 4,000.00 3/1/2017 Rent Income
IN0043 4/1/2017 SMI002 LES03 A2000 Invoice Rent - April 2016 4,000.00 4/1/2017 Rent Income
IN0045 5/1/2017 SMI002 LES03 A2000 Invoice Rent - May 2016 4,000.00 5/1/2017 Rent Income
IN0047 6/1/2017 SMI002 LES03 A2000 Invoice Rent - June 2016 4,000.00 6/1/2017 Rent Income
IN0049 7/1/2017 SMI002 LES03 A2000 Invoice Rent - July 2016 4,000.00 7/1/2017 Rent Income
IN0051 8/1/2017 SMI002 LES03 A2000 Invoice Rent - August 2016 4,000.00 8/1/2017 Rent Income
IN0053 9/1/2017 SMI002 LES03 A2000 Invoice Rent - September 2016 4,000.00 9/1/2017 Rent Income
IN0055 10/1/2017 SMI002 LES03 A2000 Invoice Rent - October 2016 4,400.00 10/1/2017 Rent Income
IN0057 11/1/2017 SMI002 LES03 A2000 Invoice Rent - November 2016 4,400.00 11/1/2017 Rent Income
IN0059 12/1/2017 SMI002 LES03 A2000 Invoice Rent - December 2016 4,400.00 12/1/2017 Rent Income
IN0061 1/1/2018 SMI002 LES03 A2000 Invoice Rent - January 2017 4,400.00 1/1/2018 Rent Income
IN0063 2/1/2018 SMI002 LES03 A2000 Invoice Rent - February 2017 4,400.00 2/1/2018 Rent Income
IN0065 3/1/2018 SMI002 LES03 A2000 Invoice Rent - March 2017 4,400.00 3/1/2018 Rent Income
IN0067 4/1/2018 SMI002 LES03 A2000 Invoice Rent - April 2017 4,400.00 4/1/2018 Rent Income
IN0069 5/1/2018 SMI002 LES03 A2000 Invoice Rent - May 2017 4,400.00 5/1/2018 Rent Income
IN0071 6/1/2018 SMI002 LES03 A2000 Invoice Rent - June 2017 4,400.00 6/1/2018 Rent Income
IN0073 7/1/2018 SMI002 LES03 A2000 Invoice Rent - July 2017 4,400.00 7/1/2018 Rent Income
IN0075 8/1/2018 SMI002 LES03 A2000 Invoice Rent - August 2017 4,400.00 8/1/2018 Rent Income
SALE 9/18/2018 SMI002 A6000 Selling Price Sale - SMI002 860,000.00 9/18/2018 Selling Price
IN0088 7/1/2019 CHA003 LES04 A2000 Invoice Rent - July 2018 10,500.00 7/1/2019 Rent Income
Page 32 of 53
Income Transactions
Invoice Allocation Transaction Transaction Transaction
Number Invoice Date Property Code Lessee Code Code Reference Description Amount Payment Date Allocation Description
IN0090 8/1/2019 CHA003 LES04 A2000 Invoice Rent - August 2018 10,500.00 8/1/2019 Rent Income
IN0092 9/1/2019 CHA003 LES04 A2000 Invoice Rent - September 2018 10,500.00 9/2/2019 Rent Income
IN0094 10/1/2019 CHA003 LES04 A2000 Invoice Rent - October 2018 10,500.00 10/1/2019 Rent Income
IN0096 11/1/2019 CHA003 LES04 A2000 Invoice Rent - November 2018 10,500.00 11/1/2019 Rent Income
IN0098 12/1/2019 CHA003 LES04 A2000 Invoice Rent - December 2018 10,500.00 12/1/2019 Rent Income
IN0100 1/1/2020 CHA003 LES04 A2000 Invoice Rent - January 2019 10,500.00 1/1/2020 Rent Income
IN0102 2/1/2020 CHA003 LES04 A2000 Invoice Rent - February 2019 10,500.00 2/1/2020 Rent Income
BOND 2/14/2020 CHA003 A5000 Statement Access Bond Withdrawal 50,000.00 2/14/2020 Bond Repayments
IN0104 3/1/2020 CHA003 LES04 A2000 Invoice Rent - March 2019 10,500.00 3/1/2020 Rent Income
IN0106 4/1/2020 CHA003 LES04 A2000 Invoice Rent - April 2019 10,500.00 4/1/2020 Rent Income
IN0108 5/1/2020 CHA003 LES04 A2000 Invoice Rent - May 2019 10,500.00 5/1/2020 Rent Income
IN0110 6/1/2020 CHA003 LES04 A2000 Invoice Rent - June 2019 10,500.00 6/1/2020 Rent Income
IN0128 3/1/2021 CHA003 LES04 A2000 Invoice Rent - March 2020 11,300.00 3/1/2021 Rent Income
IN0130 4/1/2021 CHA003 LES04 A2000 Invoice Rent - April 2020 11,300.00 4/1/2021 Rent Income
IN0132 5/1/2021 CHA003 LES04 A2000 Invoice Rent - May 2020 11,300.00 5/1/2021 Rent Income
IN0134 6/1/2021 CHA003 LES04 A2000 Invoice Rent - June 2020 11,300.00 6/1/2021 Rent Income
Page 33 of 53
Tax Invoice & Statement
AN Example
15 Mandela Drive Invoice Number: IN0150
Sandton Invoice Date: 2/1/2022
Johannesburg Invoice Due Date: 2/1/2022
1000 Invoiced To:
LES04
Telephone: 011 999 9999 S Andrews
Fax: 011 999 0000 10 Charles Avenue
E-mail: lessor@mymail.co.za Northcliff
Johannesburg
VAT Number: Not Registered 0001
Customer VAT No: Not Registered
Description Amount VAT Total
Opening Balance 0.00

Rent - February 2021 12,090.00 0.00 12,090.00
On this sheet:
This sheet includes a tax invoice that can be compiled automatically by simply entering the
appropriate tax invoice number in cell H6. The tax invoice also functions like a customer account
statement and includes an opening balance and a monthly age analysis. All the information that is
required on the tax invoice is entered on the other sheets of this template.
VAT Total 0.00

Amount Due 12,090.00
Banking Details: Current 30 Days 60 Days

Bank FNB 0.00 0.00 0.00
Account Type Cheque Account
Branch Code 111-999 90 Days 120 Days 150+ Days
Account Number 1111 999 999 0.00 0.00 0.00
Expense Transactions
Transaction Transaction Transaction
Date Property Code Supplier Allocation Code Reference Description Amount Allocation Description Property Status Date Sold
4/15/2014 WIL001 SARS A1000 IN0079 Transfer Duty 25,000.00 Transfer Costs Active -
4/15/2014 WIL001 Buchanan Boyes A1000 IN00803104 Conveyance Fees 17,251.00 Transfer Costs Active -
4/15/2014 WIL001 Buchanan Boyes A1100 IN00813105 Bond Registration Fees 16,054.00 Bond Costs Active -
4/15/2014 WIL001 PropDev Developers A1200 PD005 Deposit 100,000.00 Deposit Amount Active -
5/1/2014 WIL001 Pam Golding A3000 PM1001 Property Management 300.00 Property Management Fees Active -
5/1/2014 WIL001 City of Johannesburg A3100 JCC51008 Property Rates 2,083.33 Rates Active -
5/1/2014 WIL001 WD Body Corporate A3200 WD1002 Monthly Levies 300.00 Levies Active -
5/1/2014 WIL001 FNB Home Insurance A3400 StatementOn this sheet:
Monthly Insurance 100.00 Insurance Active -
5/5/2014 WIL001
All FNB
property expenses need to be A5000
entered on Statement
this sheet and allocated to one of the pre-defined allocation codes. 7,810.41
Monthly Bond Repayment
The Bond Repayments Active -
6/1/2014 WIL001 expenses that are entered on this A3000
Pam Golding sheet are automatically
PM1802 included onManagement
Property the annual and monthly cash flow reports. The 300.00 Property Management Fees Active -
6/1/2014 WIL001 columns
City ofwith a yellow column heading
Johannesburg A3100 require user input and
JCC51008 the columns
Property Rates with a light blue column heading contain
2,083.33 Rates Active -
6/1/2014 WIL001 formulas that are automatically
WD Body Corporate copied
A3200for all new
WD1072transactions that are entered
Monthly Levies on this sheet. 300.00 Levies Active -
6/1/2014 WIL001 FNB Home Insurance A3400 Statement Monthly Insurance 100.00 Insurance Active -
6/5/2014 WIL001 FNB A5000 Statement Monthly Bond Repayment 7,810.41 Bond Repayments Active -
7/1/2014 WIL001 Remax A3507 IN0078 Annual Valuation 500.00 Operational - Other Active -
8/12/2014 WIL001 AG Builders A3301 INV0098 Repairs - Roof 4,500.00 R&M - Building Active -
9/7/2015 WIL001 SG Electronics A3302 I998 Repairs - Garage Door 4,770.00 R&M - Electrical Active -
Page 35 of 53
7/2/2016 WIL001 Deco Supplies A3303 Cash Replacement of geyser 5,056.20 R&M - Plumbing Active -
9/15/2016 SMI002 SARS A1000 IN0079 Transfer Duty 7,000.00 Transfer Costs Sold 9/18/2018
9/15/2016 SMI002 Buchanan Boyes A1000 IN0080 Conveyance Fees 13,007.00 Transfer Costs Sold 9/18/2018
9/15/2016 SMI002 Buchanan Boyes A1100 IN0081 Bond Registration Fees 5,782.00 Bond Costs Sold 9/18/2018
10/1/2016 SMI002 City of Johannesburg A3100 JCC80008 Property Rates 1,498.13 Rates Sold 9/18/2018
10/1/2016 SMI002 ABSA A3400 Statement Monthly Insurance 110.00 Insurance Sold 9/18/2018
10/7/2016 SMI002 ABSA A5000 Statement Monthly Bond Repayment 7,498.08 Bond Repayments Sold 9/18/2018
Page 36 of 53
2/18/2017 SMI002 AG Builders A1300 INV0398 Patio 14,200.00 Renovation Costs Sold 9/18/2018
11/12/2017 WIL001 Lumay Pools A3304 LP9997 Replacement of swimming pool pump 5,359.57 R&M - Pool Active -
12/10/2017 SMI002 ABSA A5000 Statement Additional Bond Repayment 15,000.00 Bond Repayments Sold 9/18/2018
1/14/2018 SMI002 AG Builders A3301 INV1098 Repairs - Roof 3,200.00 R&M - Building Sold 9/18/2018
Page 37 of 53
6/21/2018 WIL001 Macro Paint A3301 LP9997 Paint exterior of building 5,681.15 R&M - Building Active -
9/18/2018 SMI002 Pam Golding A6100 PMG100972 Agents Commission - SMI002 49,020.00 Selling Costs Sold 9/18/2018
9/18/2018 SMI002 SARS A6200 Income Tax Capital Gains Tax - SMI002 10,257.98 Capital Gains Tax Sold 9/18/2018
9/18/2018 SMI002 ABSA A6300 Statement Settlement of Bond - SMI002 609,012.76 Outstanding Bond Amount Sold 9/18/2018
9/18/2018 SMI002 ABSA A6400 Statement Bond Cancellation Fee - SMI002 11,789.40 Bond Cancellation Fee Sold 9/18/2018
Page 38 of 53
5/2/2019 CHA003 SARS A1000 IN2079 Transfer Duty 65,000.00 Transfer Costs Active -
5/2/2019 CHA003 Buchanan Boyes A1000 IN208092 Conveyance Fees 20,061.00 Transfer Costs Active -
5/2/2019 CHA003 Buchanan Boyes A1100 IN208093 Bond Registration Fees 19,852.00 Bond Costs Active -
5/2/2019 CHA003 RTY Developers A1200 RTY001 Deposit 200,000.00 Deposit Amount Active -
7/1/2019 CHA003 City of Johannesburg A3100 JCC310008 Property Rates 4,221.52 Rates Active -
7/1/2019 CHA003 SL Body Corporate A3200 SL5132 Monthly Levies 520.00 Levies Active -
7/1/2019 CHA003 ABSA A3400 Statement Monthly Insurance 215.00 Insurance Active -
7/7/2019 CHA003 ABSA A5000 Statement Monthly Bond Repayment 10,873.72 Bond Repayments Active -
9/21/2019 CHA003 ABSA A5000 Statement Additional Bond Repayment 30,000.00 Bond Repayments Active -
11/15/2019 WIL001 TR Plumbing A3303 Cash Water pipe repair 1,704.20 R&M - Plumbing Active -
12/14/2019 CHA003 ABSA A5000 Statement Additional Bond Repayment 14,000.00 Bond Repayments Active -
Page 39 of 53
Page 40 of 53
Page 41 of 53
Page 42 of 53
Annual Market Values
Effective Date 4/20/2014 9/15/2016 6/1/2019 12/30/1899 12/30/1899 12/30/1899 12/30/1899 12/30/1899 12/30/1899 12/30/1899
Property Status Active Sold Active 12/30/1899 12/30/1899 12/30/1899 12/30/1899 12/30/1899 12/30/1899 12/30/1899
Date Sold 12/30/1899 9/18/2018 12/30/1899 12/30/1899 12/30/1899 12/30/1899 12/30/1899 12/30/1899 12/30/1899 12/30/1899
Year WIL001 SMI002 CHA003 - - - - - - -
Feb-2000 - - - - - - - - - -
Feb-2001 - - - - - - - - - -
Feb-2002 - - - - - - - - - -
Feb-2003 - - - - - - - - - -
Feb-2004 - - - - - - - - - -
Feb-2005 - - - - - - - - - -
Feb-2006 - - - - - - - - - -
Feb-2007 - - - - - - - - - -
Feb-2008 - - - - - - - - - -
Feb-2009 - - - - - - - - - -
Feb-2010 - - - - - - - - - -
Feb-2011 - - - - - - - - - -
Feb-2012 - - - - - - - - - -
Feb-2013 - - - - - - - - - -
Feb-2014 - - - - - - - - - -
Feb-2015 1,150,000.00 - - - - - - - - -
On this sheet:
Feb-2016 1,265,000.00 - - - - - - - - -
The template enables users to measure investment return on an annual and cumulative basis. In
Feb-2017 1,328,250.00 700,000.00 - - - - - - - -
order to calculate an annual investment return, an annual market value for each property needs to
Feb-2018 1,368,097.50 792,000.00 - - - - - - - -
be entered on this sheet. Only the cells that require user input are displayed with a yellow cell
Feb-2019 1,477,545.30 - - - - - - - - -
background.
Feb-2020 1,540,000.00 - 1,620,000.00 - - - - - - -
Feb-2021 1,610,000.00 - 1,730,000.00 - - - - - - -
Feb-2022 1,650,000.00 - 1,800,000.00 - - - - - - -
Feb-2023 - - - - - - - - - -
Feb-2024 - - - - - - - - - -
Feb-2025 - - - - - - - - - -
Feb-2026 - - - - - - - - - -
Feb-2027 - - - - - - - - - -
Feb-2028 - - - - - - - - - -
Feb-2029 - - - - - - - - - -
Feb-2030 - - - - - - - - - -
Feb-2031 - - - - - - - - - -
Feb-2032 - - - - - - - - - -
Feb-2033 - - - - - - - - - -
Feb-2034 - - - - - - - - - -
Feb-2035 - - - - - - - - - -
Feb-2036 - - - - - - - - - -
Feb-2037 - - - - - - - - - -
Feb-2038 - - - - - - - - - -
Feb-2039 - - - - - - - - - -
Feb-2040 - - - - - - - - - -
Feb-2041 - - - - - - - - - -
Feb-2042 - - - - - - - - - -
Feb-2043 - - - - - - - - - -
Feb-2044 - - - - - - - - - -
Feb-2045 - - - - - - - - - -
Feb-2046 - - - - - - - - - -
Feb-2047 - - - - - - - - - -
Feb-2048 - - - - - - - - - -
Feb-2049 - - - - - - - - - -
Feb-2050 - - - - - - - - - -
Page 43 of 53
Annual Outstanding Bond Amount
Effective Date 4/20/2014 9/15/2016 6/1/2019 12/30/1899 12/30/1899 12/30/1899 12/30/1899 12/30/1899 12/30/1899 12/30/1899
Property Status Active Sold Active 12/30/1899 12/30/1899 12/30/1899 12/30/1899 12/30/1899 12/30/1899 12/30/1899
Date Sold 12/30/1899 9/18/2018 12/30/1899 12/30/1899 12/30/1899 12/30/1899 12/30/1899 12/30/1899 12/30/1899 12/30/1899
Year WIL001 SMI002 CHA003 - - - - - - -
Feb-2000 - - - - - - - - - -
Feb-2001 - - - - - - - - - -
Feb-2002 - - - - - - - - - -
Feb-2003 - - - - - - - - - -
Feb-2004 - - - - - - - - - -
Feb-2005 - - - - - - - - - -
Feb-2006 - - - - - - - - - -
Feb-2007 - - - - - - - - - -
Feb-2008 - - - - - - - - - -
Feb-2009 - - - - - - - - - -
Feb-2010 - - - - - - - - - -
Feb-2011 - - - - - - - - - -
Feb-2012 - - - - - - - - - -
Feb-2013 - - - - - - - - - -
Feb-2014 - - - - - - - - - -
Feb-2015 882,087.94 - - - - - - - - -
On this sheet:
Feb-2016 865,342.09 - - -
Users are also - the outstanding -bond amount for each
required to enter - property at the- end - -
Feb-2017 850,631.68 637,228.92 - -
of each annual period on this- sheet. Only the cells
- -
that require user -
input are displayed - -
Feb-2018 835,448.23 615,685.29 - - cell background.-
with a yellow - - - - -
Feb-2019 809,866.70 - - - - - - - - -
Feb-2020 785,120.28 - 1,287,414.66 - - - - - - -
Feb-2021 760,723.34 - 1,263,305.11 - - - - - - -
Feb-2022 737,125.45 - 1,245,653.22 - - - - - - -
Feb-2023 - - - - - - - - - -
Feb-2024 - - - - - - - - - -
Feb-2025 - - - - - - - - - -
Feb-2026 - - - - - - - - - -
Feb-2027 - - - - - - - - - -
Feb-2028 - - - - - - - - - -
Feb-2029 - - - - - - - - - -
Feb-2030 - - - - - - - - - -
Feb-2031 - - - - - - - - - -
Feb-2032 - - - - - - - - - -
Feb-2033 - - - - - - - - - -
Feb-2034 - - - - - - - - - -
Feb-2035 - - - - - - - - - -
Feb-2036 - - - - - - - - - -
Feb-2037 - - - - - - - - - -
Feb-2038 - - - - - - - - - -
Feb-2039 - - - - - - - - - -
Feb-2040 - - - - - - - - - -
Feb-2041 - - - - - - - - - -
Feb-2042 - - - - - - - - - -
Feb-2043 - - - - - - - - - -
Feb-2044 - - - - - - - - - -
Feb-2045 - - - - - - - - - -
Feb-2046 - - - - - - - - - -
Feb-2047 - - - - - - - - - -
Feb-2048 - - - - - - - - - -
Feb-2049 - - - - - - - - - -
Feb-2050 - - - - - - - - - -
Page 44 of 53
Property Investment Select Property
Cash Flow Calculation All Properties
Market Value 1,150,000.00 1,265,000.00 2,028,250.00 2,160,097.50 1,477,545.30 3,160,000.00 3,340,000.00 3,450,000.00 - -
Outstanding Bond Amount 882,087.94 865,342.09 1,487,860.60 1,451,133.52 809,866.70 2,072,534.94 2,024,028.45 1,982,778.67 - -
Equity 1 267,912.06 399,657.91 540,389.40 708,963.98 667,678.60 1,087,465.06 1,315,971.55 1,467,221.33 - -
Year Number 1 2 3 4 5 6 7 8 9 10
Feb-2015 Feb-2016 Feb-2017 Feb-2018 Feb-2019 Feb-2020 Feb-2021 Feb-2022 Feb-2023 Feb-2024
A1000 Transfer Costs (42,251.00) - (20,007.00) - - (85,061.00) - - - -
A1100 Bond Costs (16,054.00) - (5,782.00) - - (19,852.00) - - - -
A1200 Deposit Amount (100,000.00) - - - - (200,000.00) - - - -
A1300 Renovation Costs - - (14,200.00) - - - - - - -
A2000 Rent Income 60,000.00 78,000.00 105,800.00 144,380.00 130,218.00 198,169.20 257,980.00 276,872.00 - -
A3000 Property Management Fees (3,000.00) (3,900.00) (4,290.00) On this sheet:
(4,719.00) (5,190.90) (5,708.46) (5,796.00) (6,348.00) - -
A3100 Rates (20,833.30) This (26,249.96)
sheet includes an(35,315.61)
annual cash flow(48,370.90)
report that is automatically
(43,021.54) compiled based on the(84,430.44)
(66,807.92) (86,595.79) - -
A3200 Levies (3,000.00) transactions that are entered
(3,780.00) on the Income(4,247.16)
(4,006.80) and Expenses sheets. No user input(9,083.58)
(4,502.00) is required aside(11,239.32) (11,559.32) - -
A3300 Repairs and Maintenance (4,500.00) from (4,770.00)
selecting the appropriate
(5,056.20)property (8,559.57)
code. The cash flow report for the(1,704.20)
(5,681.15) entire property - - - -
A3400 Insurance (1,000.00) portfolio can be displayed
(1,260.00) by simply clearing
(1,885.60) the contents of the
(2,845.72) property list box.(3,310.80)
(2,387.70) (4,185.96) (4,485.96) - -
A3500 Other Operational Costs (500.00) (530.00) (561.80) (595.51) (631.24) (620.10) - - - -
A4000 Income Tax 9,907.60 13,852.51 24,013.63 37,300.68 12,277.23 6,171.44 3,178.89 57.19 - -
A5000 Bond Repayments (78,104.09) (100,430.93) (152,210.90) (236,104.81) (141,981.64) (168,837.37) (211,431.06) (209,323.34) - -
A6000 Selling Price - - - - 860,000.00 - - - - -
A6100 Selling Costs - - - - (49,020.00) - - - - -
A6200 Capital Gains Tax - - - - (10,257.98) - - - - -
A6300 Outstanding Bond Amount - - - - (609,012.76) - - - - -
A6400 Bond Cancellation Fee - - - - (11,789.40) - - - - -
Total Annual Cash Flow (199,334.79) (49,068.38) (113,502.29) (123,761.99) 119,018.92 (356,644.79) (55,923.89) (41,383.22) - -
Page 45
Property Investment
Cash Flow Calculation
Market Value -
Outstanding Bond Amount -
Equity 1 -
Year Number 11
Feb-2025
A1000 Transfer Costs -
A1100 Bond Costs -
A1200 Deposit Amount -
A1300 Renovation Costs -
A2000 Rent Income -
A3000 Property Management Fees -
A3100 Rates -
A3200 Levies -
A3300 Repairs and Maintenance -
A3400 Insurance -
A3500 Other Operational Costs -
A4000 Income Tax -
A5000 Bond Repayments -
A6000 Selling Price -
A6100 Selling Costs -
A6200 Capital Gains Tax -
A6300 Outstanding Bond Amount -
A6400 Bond Cancellation Fee -
Total Annual Cash Flow -
Page 46
Property Investment
Cash Flow Calculation
Market Value - - - - - - - - -
Outstanding Bond Amount - - - - - - - - -
Equity 1 - - - - - - - - -
Year Number 12 13 14 15 16 17 18 19 20
Feb-2026 Feb-2027 Feb-2028 Feb-2029 Feb-2030 Feb-2031 Feb-2032 Feb-2033 Feb-2034
A1000 Transfer Costs - - - - - - - - -
A1100 Bond Costs - - - - - - - - -
A1200 Deposit Amount - - - - - - - - -
A1300 Renovation Costs - - - - - - - - -
A2000 Rent Income - - - - - - - - -
A3000 Property Management Fees - - - - - - - - -
A3100 Rates - - - - - - - - -
A3200 Levies - - - - - - - - -
A3300 Repairs and Maintenance - - - - - - - - -
A3400 Insurance - - - - - - - - -
A3500 Other Operational Costs - - - - - - - - -
A4000 Income Tax - - - - - - - - -
A5000 Bond Repayments - - - - - - - - -
A6000 Selling Price - - - - - - - - -
A6100 Selling Costs - - - - - - - - -
A6200 Capital Gains Tax - - - - - - - - -
A6300 Outstanding Bond Amount - - - - - - - - -
A6400 Bond Cancellation Fee - - - - - - - - -
Total Annual Cash Flow - - - - - - - - -
Page 47
t
i
l
a
e
R
Property Investment
y
Cash Flow Calculation t
© www.propertyreality.co.za r
Market Value e
p
Outstanding Bond Amount o
Equity 1 r
P
Year Number ©
A1000 Transfer Costs

A1100 Bond Costs
A1200 Deposit Amount
A1300 Renovation Costs
A2000 Rent Income
A3000 Property Management Fees
A3100 Rates
A3200 Levies
A3300 Repairs and Maintenance
A3400 Insurance
A3500 Other Operational Costs
A4000 Income Tax
A5000 Bond Repayments
A6000 Selling Price
A6100 Selling Costs
A6200 Capital Gains Tax
A6300 Outstanding Bond Amount
A6400 Bond Cancellation Fee
Total Annual Cash Flow
Page 48
Property Investment
Actual Investment Return Property All Properties
Year Number 1 2 3 4 5 6 7 8 9
Net Cash Flow - Annual (199,335) (49,068) (113,502) (123,762) 119,019 (356,645) (55,924) (41,383) -
Net Cash Flow - Cumulative (199,335) (248,403) (361,905) (485,667) (366,649) (723,293) (779,217) (820,600) -
Equity Calculation
Market Value 1,150,000 1,265,000 2,028,250 2,160,098 1,477,545 3,160,000 3,340,000 3,450,000 -
Outstanding Bond Amount (882,088) (865,342) (1,487,861) (1,451,134) (809,867) (2,072,535) (2,024,028) (1,982,779) -
Equity 1 267,912 399,658 540,389 708,964 667,679 1,087,465 1,315,972 1,467,221 -
VAT - - - - - - - - -
Selling Costs (66,125) (72,738) (116,624) (124,206) (84,959) (181,700) (192,050) (198,375) -
Capital Gains Tax (4,995) (18,001) (23,420) On this sheet:
(38,332) (42,040) (42,119) (62,477) (74,918) -
Equity Balance 196,792 This308,919
sheet includes a comprehensive
400,345 analysis of the annual and
546,426 cumulative investment
540,679 863,647 return of1,061,445
the 1,193,929 -
Equity Contributed (during the year) 199,335 selected individual property
49,068 113,502 or portfolio. Individual property
123,762 (119,019)codes can be selected from the
356,645 55,924 41,383 -
Annual Net Profit / (Loss) (2,543) property
63,058list box on the "CashFlow" sheet
(22,076) or the list box can
22,319 be cleared to compile
113,272 (33,678)an investment
141,875 91,101 -
Cumulative Profit / (Loss) (2,543) return analysis for the entire
60,516 38,439 property portfolio.
60,759 No user input is required on this
174,031 sheet.
140,353 282,228 373,328 -
Ratios
Annual Capital Growth 18.3% 10.0% 6.5% 6.5% 8.2% 6.1% 5.7% 3.3% -
Average Annual Capital Growth (cumulative) 18.3% 13.7% 7.8% 7.5% 7.6% 4.1% 4.3% 4.2% -
Net Present Value (NPV) (2,399) 43,214 9,116 7,769 67,913 21,302 81,194 98,394 -
Internal Rate of Return (IRR) - 30.4% 8.3% 7.1% 11.8% 7.5% 9.8% 9.6% -
Return on Equity (1.3%) 20.4% (5.5%) 4.1% 20.9% (3.9%) 13.4% 7.6% -
Rental Yield - Market Value 5.2% 6.2% 5.2% 6.7% 5.6% 6.3% 7.7% 8.0% -
Rental Yield - Property Purchase Price 6.0% 7.8% 6.5% 8.8% 7.9% 7.9% 10.3% 11.1% -
Rental Yield - Outstanding Bond Amount 6.8% 9.0% 7.1% 9.9% 9.2% 9.6% 12.7% 14.0% -
Net Rental Yield - Market Value 2.4% 3.0% 2.7% 3.5% 2.9% 3.5% 4.6% 4.9% -
Net Rental Yield - Property Purchase Price 2.7% 3.8% 3.3% 4.6% 4.2% 4.4% 6.1% 6.7% -
Net Rental Yield - Outstanding Bond Amount 3.1% 4.3% 3.7% 5.2% 4.8% 5.4% 7.5% 8.5% -
Equity 1 / Market Value 23.3% 31.6% 26.6% 32.8% 45.2% 34.4% 39.4% 42.5% -
Disposal Cost % 6.2% 7.2% 6.9% 7.5% 8.6% 7.1% 7.6% 7.9% -
Outstanding Bond % 98.0% 96.1% 96.6% 94.2% 90.0% 94.2% 92.0% 90.1% -
Cumulative Profit / Property Purchase Price (0.3%) 6.1% 2.3% 3.7% 10.6% 4.5% 9.0% 11.9% -
Page 49
Property Investment
Actual Investment Return
Year Number 10
Feb-2024
Net Cash Flow - Annual -
Net Cash Flow - Cumulative -
Equity Calculation
Market Value -
Equity 1 -
VAT -
Selling Costs -
Capital Gains Tax -
Equity Balance -
Equity Contributed (during the year) -
Annual Net Profit / (Loss) -
Cumulative Profit / (Loss) -
Ratios
Annual Capital Growth -
Average Annual Capital Growth (cumulative) -
Net Present Value (NPV) -
Internal Rate of Return (IRR) -
Return on Equity -
Rental Yield - Market Value -
Rental Yield - Property Purchase Price -
Rental Yield - Outstanding Bond Amount -
Net Rental Yield - Market Value -
Net Rental Yield - Property Purchase Price -
Net Rental Yield - Outstanding Bond Amount -
Equity 1 / Market Value -
Disposal Cost % -
Outstanding Bond % -
Cumulative Profit / Property Purchase Price -
Page 50
Property Investment
Year Number 11 12 13 14 15 16 17 18 19
Net Cash Flow - Annual - - - - - - - - -
Net Cash Flow - Cumulative - - - - - - - - -
Equity Calculation
Market Value - - - - - - - - -
Outstanding Bond Amount - - - - - - - - -
Equity 1 - - - - - - - - -
VAT - - - - - - - - -
Selling Costs - - - - - - - - -
Capital Gains Tax - - - - - - - - -
Equity Balance - - - - - - - - -
Equity Contributed (during the year) - - - - - - - - -
Annual Net Profit / (Loss) - - - - - - - - -
Cumulative Profit / (Loss) - - - - - - - - -
Ratios
Annual Capital Growth - - - - - - - - -
Average Annual Capital Growth (cumulative) - - - - - - - - -
Net Present Value (NPV) - - - - - - - - -
Internal Rate of Return (IRR) - - - - - - - - -
Return on Equity - - - - - - - - -
Rental Yield - Market Value - - - - - - - - -
Rental Yield - Property Purchase Price - - - - - - - - -
Rental Yield - Outstanding Bond Amount - - - - - - - - -
Net Rental Yield - Market Value - - - - - - - - -
Net Rental Yield - Property Purchase Price - - - - - - - - -
Net Rental Yield - Outstanding Bond Amount - - - - - - - - -
Equity 1 / Market Value - - - - - - - - -
Disposal Cost % - - - - - - - - -
Outstanding Bond % - - - - - - - - -
Cumulative Profit / Property Purchase Price - - - - - - - - -
Page 51
Property Investment
Year Number 20
Feb-2034
Net Cash Flow - Annual -
Net Cash Flow - Cumulative -
Equity Calculation
Market Value -
Equity 1 -
VAT -
Selling Costs -
Capital Gains Tax -
Equity Balance -
Equity Contributed (during the year) -
Annual Net Profit / (Loss) -
Cumulative Profit / (Loss) -
Ratios
Annual Capital Growth -
Average Annual Capital Growth (cumulative) -
Net Present Value (NPV) -
Internal Rate of Return (IRR) -
Return on Equity -
Rental Yield - Market Value -
Rental Yield - Property Purchase Price -
Rental Yield - Outstanding Bond Amount -
Net Rental Yield - Market Value -
Net Rental Yield - Property Purchase Price -
Net Rental Yield - Outstanding Bond Amount -
Equity 1 / Market Value -
Disposal Cost % -
Outstanding Bond % -
Cumulative Profit / Property Purchase Price -
Page 52
Property Investment
Monthly Cash Flow Report Select Year Feb-2022
© www.propertyreality.co.za Property All Properties
Month Number 1 2 3 4 5 6 7 8 9 10 11 12
Mar-2021 Apr-2021 May-2021 Jun-2021 Jul-2021 Aug-2021 Sep-2021 Oct-2021 Nov-2021 Dec-2021 Jan-2022 Feb-2022 Total
A1000 Transfer Costs - - - - - - - - - - - - -
A1100 Bond Costs - - - - - - - - - - - - -
A1200 Deposit Amount - - - - - - - - - - - - -
A1300 Renovation Costs - - - - - - - - - - - - -
A2000 Rent Income 21,926.00 21,926.00 22,670.00 22,670.00 23,460.00 23,460.00 23,460.00 23,460.00 23,460.00 23,460.00 23,460.00 23,460.00 276,872.00
A3000 Property Management Fees (483.00) (483.00) (483.00) (483.00) (483.00) (483.00) (575.00) (575.00) (575.00) (575.00) (575.00) (575.00) (6,348.00)
A3100 Rates (7,035.87) (7,035.87) (7,035.87) (7,035.87) (7,035.87) (7,035.87) (7,035.87) (7,314.68) (7,314.68) (7,314.68) (7,700.33) (7,700.33) (86,595.79)
A3200 Levies (936.61) (936.61) (936.61) (936.61) (936.61) (936.61) (936.61) (936.61) (1,016.61) (1,016.61) (1,016.61) (1,016.61) (11,559.32)
A3300 Repairs and Maintenance - - - - - - - - - - - - -
A3301 Building - - - - - - - - - - - - -
A3302 Electrical - - - - - - - - - - - - -
On this sheet:
A3303 Plumbing - - - - - - - - - - - - -
This sheet includes a monthly cash flow report. The monthly report can be displayed for any
A3304 Pool - - - - - - - - - - - - -
annual period that is included on the "CashFlow" sheet by selecting the appropriate annual
A3305 Other - - - - - - - - - - - - -
period from the list box at the top of the sheet. This is the only user input that is required on this
A3400 Insurance (348.83) (348.83) (348.83) (348.83) (348.83) (348.83) (348.83) (408.83) (408.83) (408.83) (408.83) (408.83) (4,485.96)
sheet.
A3500 Other Annual Operational Costs - - - - - - - - - - - - -
A3501 Water - - - - - - - - - - - - -
A3502 Electricity - - - - - - - - - - - - -
A3503 Refuse Removal - - - - - - - - - - - - -
A3504 Sanitation - - - - - - - - - - - - -
A3505 Gardening - - - - - - - - - - - - -
A3506 Housekeeping - - - - - - - - - - - - -
A3507 Other - - - - - - - - - - - - -
A4000 Income Tax - - - - - - - - - - - 57.19 57.19
A5000 Bond Repayments (17,619.25) (17,619.25) (17,619.25) (17,619.25) (17,355.79) (17,355.79) (17,355.79) (17,355.79) (17,355.79) (17,355.79) (17,355.79) (17,355.79) (209,323.34)
A6000 Selling Price - - - - - - - - - - - - -
A6100 Selling Costs - - - - - - - - - - - - -
A6200 Capital Gains Tax - - - - - - - - - - - - -
A6300 Outstanding Bond Amount - - - - - - - - - - - - -
A6400 Bond Cancellation Fee - - - - - - - - - - - - -
Total Monthly Cash Flow (4,497.56) (4,497.56) (3,753.56) (3,753.56) (2,700.10) (2,700.10) (2,792.10) (3,130.91) (3,210.91) (3,210.91) (3,596.56) (3,539.37) (41,383.22)
Page 53 of 53

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PROPERTY REALITY

BUT TO LET PROPERTY INVESTMENT TEMPL

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The following sheets are included in this template:

Transaction Allocation Codes

Property Management Fees

Repairs & Maintenance

Capital Gains Tax

Outstanding Bond Amount

Bond Cancellation Fee

Recording Property Income

The name of the appropriate supplier should be entered in column C.

A description of the transaction should be entered in column F.

Annual Market Values

Annual Outstanding Bond Amounts

Annual Cash Flow Report

Property Investment Return Analysis

Net Cash Flow - Annual

Net Cash Flow - Cumulative

Equity Balance Calculation

Capital Gains Tax

Equity Contributed (during the year)

Annual Net Profit (Loss)

Cumulative Profit (Loss)

Annual Capital Growth

Average Annual Capital Growth

Net Present Value (NPV)

Internal Rate of Return (IRR)

Property Purchase Price

Outstanding Bond Amount

Net Rental Yields

Equity 1 / Market Value

Cumulative Profit / Property Purchase Price

Monthly Cash Flow Report

Year End February 4/30/2014 2/28/2015 10.00

Customer VAT No: Not Registered

Description Amount VAT Total

Opening Balance 0.00

VAT Total 0.00

Banking Details: Current 30 Days 60 Days

A1000 Transfer Costs

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