This sample Financial Fit report assesses whether a $700,000 investment property aligns with the buyer’s income, deposit, loan commitments and available cash buffer. Using a 5% deposit, 6.5% principal-and-interest loan over 30 years, expected rent of $700 per week and the supplied household expenses, it models the upfront costs, repayment pressure and estimated holding comfort for a balanced investment goal.
Likely manageable, but leverage is high and policy risk should be verified.
Principal & interest at the stated rate and term.
Estimated policy-adjusted cash flow remains positive.
Useful, but not oversized for an investor purchase.
Monthly income versus commitments
A visual breakdown of estimated monthly income and regular outgoings based on the scenario entered.
Monthly income
Monthly commitments
Financial Snapshot
This deal looks manageable rather than effortless: the rent helps, the cash flow is still positive, and the buffer is serviceable, but the low deposit and high loan size mean the structure should be checked carefully before proceeding.
Upfront cash needed
- Estimated deposit amount: $35,000.
- Buying costs are not provided here and should be verified separately before commitment.
- Total upfront position is likely tight relative to the available buffer, so settlement planning matters.
Loan pressure
- Estimated loan amount: $665,000 against a $700,000 purchase price.
- Estimated monthly repayment: $4,203, which is a meaningful fixed obligation.
- Debt pressure is elevated, but the income base should help if expenses stay controlled.
Cash flow
- Estimated monthly rent income: $3,033.
- Estimated monthly costs out: repayment $4,203, other loan repayments $2,000, living expenses $1,500, holding costs $900.
- Estimated monthly cash flow position before any negative gearing tax benefit: +$2,587.
Stress test
- A rate-rise scenario would likely compress surplus quickly because the loan is large relative to the deposit.
- Vacancy or softer rent would reduce support from the $3,033 monthly rental estimate.
- Main weak point: leverage and policy dependence, not the current indicative cash flow.
Tax rule check
- Negative gearing policy treatment: Established property acquired after 12 May 2026; from 1 July 2027, deductible losses from this established residential property are not treated as available to reduce wage or salary income.
- CGT policy note: reforms apply to gains accruing from 1 July 2027 when realised, using cost base indexation and a 30% minimum tax approach; this report does not estimate CGT.
- Buyer should verify the treatment of losses, deductions, and future capital gains with a registered tax adviser before relying on any tax outcome.
Indicatively workable on cash flow, but the structure is still highly geared.
Buffer is adequate, yet rate and policy sensitivity reduce margin for error.
Recommendation
Proceed with caution. The deal appears likely manageable on the figures provided, but the best next move is to verify lender servicing, settlement costs, and tax treatment before committing to the structure.
This Financial Fit example illustrates how purchase costs, repayments, rental income, existing debts and cash reserves can affect the overall affordability of an investment property. It is designed to help buyers spot potential financial pressure before moving forward and identify where their assumptions may need adjusting. Results are general estimates only and should not replace professional lending, financial or tax advice. Explore more AI report examples or generate a personalised Financial Fit report using your own figures.