Monday, September 10, 2012
I often get contacted by Property Hawk users asking me about using the Property Manager to work out their annual profits. I say to them in short that the Property Manager doesn't work like that. Largely because for most landlords an annual profit is a pretty useless metric for you as a property investor. Most landlords will hold their investment properties for the long-term (over 15 years) and what they want to know is the capital profit or worse case scenario loss when they sell and realise their investment.
Property Manager does record gains
Looking at the capital side of the equation the Property Manager allows you to record the amount of Equity contained within your property investment. This takes into account the amount of borrowing secured against the investment and calculates the amount of additional borrowing against the investment should the landlord look to refinance. On the income side, have a look at the Cashflow section under Investment. This looks clearly at the ongoing income generating capacity of your investment.